29/03/2016 - 09:43

Otoc in $4m Sydney buy

29/03/2016 - 09:43

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OTOC has further grown its presence on the east coast with the acquisition of a Sydney-based land surveying firm for $4 million in cash and shares.

Otoc in $4m Sydney buy
Otoc chief executive Simon Thomas.

OTOC has further grown its presence on the east coast with the acquisition of a Sydney-based land surveying firm for $4 million in cash and shares.

Perth-based Otoc will pay $3 million in cash and $400,000 in shares (at 18 cents each) to acquire Linker Surveying, plus a further $600,000 subject to the achievement of performance milestones.

The cash component of the purchase will be funded out of Otoc’s existing cash reserves, and is expected to be completed in the coming weeks.

Linker, established in the 1966, provides land and strata surveying, focusing on inner-city and multi-level developments.

“The acquisition of Linker follows a strong first-half for the Otoc group and furthers our key strategic goal of establishing a presence in the Sydney land surveying market,” chief executive Simon Thomas said.

“Linker is a quality surveying business with an excellent reputation, strong track record and sound client base in its chosen markets.”

The acquisition remains subject to a number of conditions including completion of due diligence, and the signing of long-term employment contracts with the principals of Linker.

Linker will join Otoc’s pool of surveying subsidiaries including Whelans, Bosco Jonson, Geo-Metric Surveying and THG.

Otoc shares were 9.6 per cent higher to 17 cents each at 9:45am.

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