A glimpse at the Proposed Merger of LogiCamms Limited and OSD


LogiCamms Limited (ASX: LCM) is an engineering and related services company, which delivers innovative tailored asset management, engineering and project management solutions to its clients. The company recently announced the signing of a binding Share Sale and Purchase Agreement with OSD Pty Limited for a proposed merger, which will have substantial low risk cost synergies and future revenue synergy potential.

OSD Pty Limited is a respected multi-disciplined engineering services business, which offers a whole of life services to asset owners in a range of market sectors and besides that, has built a strong track record of financial performance through the economic cycle.

The combined business of the proposed merger will enjoy the benefit of expanded client base and will deliver better outcomes for the company’s employees, clients and shareholders. The proposed merger will create a strong ASX-listed mid-tier engineering business, which will help LogiCamms Limited in achieving its vision of being a market leader in delivering outstanding customer solutions.

It is expected that the combined business will have over 550 employees and pro forma forecast FY19 normalised EBITDAI of around $6.7 million. The combined business is expected to have pro forma forecast revenue of around $120 million in this financial year. Along with the cost synergies of around $3 million per annum, the combined business of the proposed merger is having a lower overhead per billable hour.

As OSD is bringing a strong balance sheet with a net cash of around $6.9 million, it is expected that the combined business will have a significantly strengthened balance sheet with a strong net cash position.

The complementary expertise and aligned cultures of both the companies will deliver better outcomes for employees, clients and shareholders. The proposed merger will provide additional management capability, and it will help LogiCamms to reduce risk and accelerate the company’s return to profitable growth.

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The proposed merger requires shareholder approval as it will involve OSD’s major shareholder, Mr. Brian O’Sullivan, and his associates acquiring a stake of more than 20% in LogiCamms.  As the proposed merger is providing various benefits to LogiCamms Limited, the directors of the company have unanimously recommended LogiCamms shareholders to vote in favour of the proposed merger. It is expected that an Extraordinary General Meeting in relation to the proposed merger will occur in late May 2019, and the merger will be completed in June 2019.

LogiCamms believes that this transaction will improve its financial performance and will greatly benefit its clients, its people and its shareholders.

For the six months to December 2018, LogiCamms Limited has reported revenue of $41.0 million and EBITDAI of $1.0 million.

In the past three months, the share price of the company has increased significantly by around 36.00%. At the time of writing, i.e., on 17 April 2019 AEST 02:05 PM, the stock of the company is trading at a price of $0.170, with a market capitalisation of ~$14 million.


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