Service Stream to acquire RIE in $6.5M deal

Australian essential network services provider Service Stream (ASX:SSM) has formalised an agreement to acquire Queensland-based RIE Group.

RIE Group, a specialist operator servicing the oil and gas, power generation, and renewable energy industries, generates approximately $13 million in annual revenue.

The industrial services firm operates across key Queensland resource hubs, including the Surat Basin, Darling Downs, and Gladstone regions, employing between 60 and 120 personnel during peak operational outage windows.

The acquisition is structured with an initial cash payment of $6.5 million, which remains subject to standard purchase price adjustments based on RIE’s final net working capital position at completion.

Service Stream has structured an additional pro-rata cash consideration of up to $1.5 million, contingent on RIE Group exceeding its minimum financial performance thresholds for FY27.

According to Service Stream Managing Director Leigh Mackender, the transaction strongly aligns with the group’s overarching strategy to diversify its total addressable market and establish deeper relationships with blue-chip asset owners.

Mackender highlighted that the integration of RIE's specialised capabilities comes at a pivotal time, allowing the company to capitalise on mounting commercial opportunities emerging from the ongoing global energy transition.

The transaction is subject to customary conditions precedent typical for commercial acquisitions of this nature.

Service Stream anticipates finalising and completing the transaction in or around August.

At the time of reporting, Service Stream’s share price was $2.29.