Vection Technologies has agreed to acquire Australian digital transformation firm DXLabs, adding immediate revenue and expanding its footprint across APAC with promising cross-sell opportunities.
- Acquisition of DXLabs adds $3.5 million revenue and $0.8 million EBIT immediately
- Deal structured as all-scrip with upfront $2.1 million consideration and performance earn-out
- Strengthens Vection’s Australian delivery team and enterprise customer base
- Unlocks cross-selling between Vection’s AI/spatial computing and DXLabs’ automation platforms
- Completion targeted by 31 October 2025, subject to due diligence
Strategic Acquisition to Accelerate Growth
Vection Technologies Ltd (ASX, VR1), a company known for bridging physical and digital worlds through extended reality (XR) and AI, has taken a decisive step to strengthen its position in the Asia-Pacific region. The company announced a binding offer to acquire 100% of Digital Experience Labs Pty Ltd (DXLabs), a fast-growing Australian digital transformation business. This move is expected to add $3.5 million in revenue and $0.8 million in earnings before interest and tax (EBIT) immediately, marking a significant boost to Vection’s financial and operational profile.
DXLabs specializes in helping enterprises and government clients optimize operations through automation and integration platforms, complementing Vection’s existing AI and spatial computing technologies. The acquisition is structured as an all-scrip deal with an upfront consideration of $2.1 million and a performance-based earn-out tied to FY26 EBITDA, aligning incentives between Vection shareholders and DXLabs’ management.
Enhancing Capabilities and Market Reach
Beyond the financial uplift, the acquisition significantly strengthens Vection’s Australian delivery capabilities. DXLabs brings a loyal customer base across insurance, logistics, lending, and government sectors, industries increasingly driven by automation and digital transformation. The retention of DXLabs’ CEO Luis Nejo and his team ensures continuity and accelerates integration, which Vection expects to complete within a month post-closing.
Vection’s Managing Director Gianmarco Biagi highlighted the strategic fit, emphasizing the complementary nature of the two companies’ technologies. The combination is expected to unlock meaningful cross-sell opportunities, offering customers end-to-end digital transformation solutions that leverage both AI spatial computing and automation platforms. This synergy could accelerate Vection’s growth trajectory across APAC’s enterprise and government markets.
Disciplined Valuation and Capital Efficiency
The acquisition was executed with financial discipline, with an upfront valuation of 2.8 times EBIT and minimal dilution to existing shareholders, estimated at around 1.9 to 2.1 percent. The earn-out structure, which could add up to $2.1 million in scrip based on FY26 EBITDA performance, further aligns the interests of both parties and mitigates risk. This approach reflects Vection’s commitment to capital-efficient growth, balancing immediate accretion with performance incentives.
Completion is targeted by 31 October 2025, pending satisfactory due diligence and other customary conditions. The deal also includes a 5% advisory fee paid in shares and standard closing account adjustments.
Looking Ahead
For DXLabs, joining Vection offers access to global XR and AI technologies, expanding their service offerings and growth potential. CEO Luis Nejo expressed enthusiasm about the partnership, noting the opportunity to innovate further and deliver greater value to clients with Vection’s global scale and resources.
As Vection integrates DXLabs, investors will be watching closely to see how effectively the combined entity leverages its enhanced capabilities to capture new market opportunities and drive sustainable growth in a competitive digital transformation landscape.
Bottom Line?
Vection’s acquisition of DXLabs sets the stage for accelerated APAC expansion, but execution and integration will be key to unlocking full value.
Questions in the middle?
- How smoothly will Vection integrate DXLabs’ team and technology within the next month?
- What specific cross-sell opportunities will emerge between Vection’s AI solutions and DXLabs’ automation platforms?
- How will the performance-based earn-out influence DXLabs’ growth targets and operational priorities in FY26?