Felix Faces Integration and Revenue Growth Challenges After $12M Nexvia Deal
Felix Group Holdings has announced a strategic acquisition of Nexvia, a Brisbane-based SaaS platform, boosting its pro-forma ARR by 38% and launching a $17 million capital raising to fund the deal and growth initiatives.
- Felix acquires Nexvia for $12 million in cash, shares, and performance rights
- Pro-forma FY25 ARR rises 38% to $11.9 million with Nexvia integration
- Capital raise includes a fully underwritten $16 million placement and $1 million share purchase plan
- Nexvia founder to consult for 12 months post-acquisition
- Commercial launch of integrated Felix-Nexvia platform targeted for FY26
Strategic Acquisition to Boost Vendor Monetisation
Felix Group Holdings Limited (ASX, FLX) has taken a significant step to accelerate its vendor monetisation strategy by entering into a binding agreement to acquire 100% of Nexvia Pty Ltd, a Brisbane-based SaaS platform tailored for construction-focused small and medium enterprises (SMEs). The $12 million deal, structured with a mix of cash, shares, and performance rights, is set to expand Felix’s product ecosystem and deepen engagement with its extensive Vendor Marketplace, which currently boasts around 110,000 vendors.
Nexvia’s platform offers project and business management tools that digitise workflows for SMEs in construction, including budgeting, scheduling, and compliance management. This complements Felix’s existing enterprise procurement platform by enabling a more integrated, end-to-end solution that bridges procurement and project delivery.
Financial Impact and Capital Raising
The acquisition delivers a pro-forma annual recurring revenue (ARR) of $11.9 million for FY25, representing a 38% increase over Felix’s standalone ARR of $8.6 million. Nexvia itself has demonstrated strong organic growth with a 25% compound annual growth rate since FY22 and achieved EBITDA breakeven in FY25, underscoring its operational momentum.
To fund the acquisition and support growth initiatives, Felix is undertaking a fully underwritten two-tranche placement to raise approximately $16 million, alongside a non-underwritten $1 million share purchase plan (SPP) for eligible shareholders. The placement has attracted strong backing from global investment manager Briarwood Chase Management LLC, which is expected to hold about 16.1% of Felix’s pro-forma shareholding post-transaction.
Integration and Growth Prospects
Felix’s CEO, Mike Davis, highlighted the strategic value of Nexvia’s capabilities, emphasizing the opportunity to unlock significant vendor monetisation potential by offering a unified platform that addresses key pain points for SMEs in the construction sector. The integration plan is already underway, with a commercial launch of the combined Felix-Nexvia solution targeted for FY26.
The acquisition also opens access to new vendor segments such as fit-out specialists and SME builders, which were previously outside Felix’s marketplace reach. By cross-selling Nexvia’s project management tools to its large vendor base, Felix aims to create a high-margin, recurring revenue stream while enhancing vendor loyalty and engagement.
Governance and Conditions
The transaction includes performance rights valued at $2.4 million, which will convert into Felix shares based on Nexvia achieving subscription revenue growth targets between 15% and 25% over a 12-month period. The deal is subject to shareholder approval and other customary conditions, with completion anticipated in early October 2025.
Nexvia’s founder, Robert Rowe, will remain involved through a 12-month consulting agreement to ensure a smooth transition and integration. Additionally, the consideration shares issued to Nexvia’s shareholders will be escrowed for 12 months, reflecting a cautious approach to alignment and value creation.
Bottom Line?
Felix’s acquisition of Nexvia and the accompanying capital raise mark a pivotal moment, setting the stage for a more integrated platform and accelerated growth, but execution risks remain around integration and revenue targets.
Questions in the middle?
- Will Nexvia meet the subscription revenue growth targets to fully convert performance rights?
- How smoothly will the integration of Felix and Nexvia platforms proceed ahead of the FY26 commercial launch?
- What impact will the capital raise and new institutional investors have on Felix’s share price and governance?
