Mallesons advises Service Stream on A$975m acquisition of Programmed and A$475m equity raising

Mallesons has advised Service Stream on an A$975 million acquisition of facilities and infrastructure provider Programmed from Japan's PERSOL Group, alongside an accompanying A$475 million equity raising.

Service Stream offers essential infrastructure services across Australia and New Zealand. The transaction is a major strategic step for Service Stream that enhances its multi-network services business, diversifies its earnings and customer base, adds facility and asset management capability and opens new markets. It will underpin Service Stream’s ongoing growth in the ASX200.

Programmed is a provider of staffing, facility management and maintenance services across Australia and New Zealand, established in 1951 and previously listed on the ASX. The acquisition followed a competitive sale process.

Mallesons advised Service Stream on all aspects of the transaction including the equity and debt fundraising and cross-border negotiations with Programmed’s existing owner, PERSOL. The acquisition is being funded by an underwritten equity raising, debt and cash, and it is conditional on receipt of ACCC clearance and certain other conditions.

The Mallesons team was led by M&A Partner Peter Stirling and Senior Associate Sam Dimopoulos. They were supported by Partners Will Heath (M&A/equity capital raising), Yuen-Yee Cho (Banking & Finance), Simon Cooke (Competition), Greg Protektor (Tax), and an M&A team including Senior Associate Jing Wang and Solicitors James Melville, Bella Kidman, Sean See, Matthew Tuxen and Benjamin Ling.

Commenting on the deal, Peter Stirling said:

“We are delighted to support Service Stream on this transformational acquisition, which follows its successful acquisition of the Lendlease Services business in 2021. This is Service Stream’s largest M&A transaction and equity raising and it is a privilege to assist in a successful launch.”

Will Heath added:

“Congratulations to Service Stream on launching its A$475 million equity raising to fund its A$975 million acquisition of Programmed. This is one of the largest secondary equity raisings on ASX this year and we are delighted it has been strongly supported by Service Stream’s existing institutional shareholders and new investors.”

Completion is expected on or around 1 March 2027.