Insitec and Electrotech Australia have merged to form Sovereign Capability Group (SCG) with the backing of Whiteoak, an Australian private equity firm.
"By merging Insitec and Electrotech to form SCG, we are creating a business of real scale that can meaningfully serve the ADF. This move positions SCG as a strong, viable entity capable of supporting Australia’s defence needs and expanding into international markets," said Whiteoak investment manager Udhav Goenka.
"In the medium-term we will provide Australia with a substantial in-country capability that we believe is of real importance to the defence industry," he added.
The new company is forecast to generate around $100 million in revenue this year due the merger.It is also looking to triple in size over five years as it moves towards providing end-to-end solutions to Defence.
"I believe our trusted relationships and strong reputation with key clients, including the Australian Department of Defence and global primes, will be further solidified through this merger," said Insitec's Chief Growth Officer, Jim Bancroft.
"This merger creates a combined entity with the scale to provide significant sovereign capability to the Australian Defence Force, he added.