Adelaide-based electrical infrastructure group Mayfield Group Holdings (ASX: MYG) has struck a binding agreement to acquire the Switchboards Division of Nilsen (SA) Pty Ltd for $4 million in cash, marking the company's third strategic acquisition in 12 months as it builds scale across defence, data centres and critical infrastructure.
The deal is being funded from existing cash reserves and is expected to complete on 31 July this year, with a staged transfer of employees and assets running through to 31 October.
Mayfield says the acquisition is centred on people and intellectual property rather than hard assets.
About 66 employees will transfer to the group along with the N-Series switchboard product platform and its associated IP, plus $3.9 million of work-in-hand.
The division is expected to contribute $10 million to $15 million in revenue in FY27.
The acquired operations will be housed at Mayfield's Royal Park manufacturing facility in Adelaide, a 10,410sqm site the company purchased in January this year for $8.4 million specifically to serve as a consolidated manufacturing platform.
"This transaction is first and foremost about people and capability," says Mayfield Group CEO Andrew Rowe.
"We expect to welcome an experienced team of designers, estimators, project professionals and skilled tradespeople to Mayfield.
"Their expertise, together with the transfer of the N-Series intellectual property and product platform, is expected to strengthen our manufacturing capability and support utilisation of our Royal Park facility.
"Importantly, the acquisition also brings a pipeline of customer work and future opportunities that are expected to allow us to put this capability to work following completion."
Rowe says the N-Series platform complements Mayfield Group's existing businesses and expands its ability to serve customers across commercial, industrial, infrastructure, defence, resources and data centre markets.
"Together, these capabilities further strengthen Mayfield's position in Australian electrical infrastructure manufacturing," he says.
Founded in 1916, Nilsen is a fourth-generation family owned electro-technology company with expertise in electrical construction and engineering, switchboard design and manufacturing, and the testing and commissioning of complex electrical systems. The company counts work on the Collins-class submarines among its major projects.
Oliver Mark Nilsen, the executive chairman of Nilsen, says Mayfield is the right home for its Switchboard Division's workforce.
"Our business has been built over many years through the dedication of our workforce and the trust of our customers," he says.
"In Mayfield Group, we have found an organisation that understands the value of those relationships and shares our commitment to quality, safety and service.
"We are pleased by the opportunity for the business, employees expected to transfer, and our product offering to become part of a group with the capability to support future growth while respecting the legacy that has been created."
The deal follows a rapid acquisition spree that began with the purchase of Brisbane-based BE Switchcraft in August last year and continued with the completion of the SMEC Power & Technology acquisition around March this year.
The SMEC deal was valued at up to $30 million or about five times EBITDA, with forecast FY26 revenue of $41 million and EBITDA of $6 million.
The acquisition lands at a time of surging demand for electrical infrastructure driven by the expansion of data centres across Australia.
Research firm Gartner forecasts Australian data centre power demand will grow 38.3 per cent in 2026 to 1.5 gigawatts, with AI-optimised servers driving 35.7 per cent of total consumption.
Mayfield's most recent half-year results, for the six months to 31 December 2025, showed revenue of $79.5 million, up 52.8 per cent on the prior corresponding period.
EBITDA rose 121 per cent to $8 million, while net profit after tax jumped 128 per cent to $4.5 million.
The company also flagged $31 million in new contract wins in a separate update earlier this year, underscoring the pipeline underpinning its growth trajectory.
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