How Will Verbrec’s $17M Deal Transform Its Automation Edge?
Verbrec Limited is streamlining its business by selling its Competency Training division for $11.5 million and acquiring Alliance Automation for $5.5 million, significantly boosting its digital and automation capabilities.
- Competency Training sold to RelyOn for $11.5 million
- Alliance Automation acquired from Telstra for $5.5 million
- Acquisition adds $62.4 million in annual revenue and 275 staff
- Combined group to have 700 employees across 18 locations
- Verbrec targets 8-10% EBITDA margin through synergies and growth
Strategic Divestment and Acquisition
Verbrec Limited has announced a significant reshaping of its business portfolio with the divestment of its Competency Training arm to RelyOn for $11.5 million in upfront cash, alongside the acquisition of Alliance Automation from Telstra for $5.5 million. The Competency Training business contributed $7.8 million in revenue in FY2025, and its sale is expected to strengthen Verbrec’s balance sheet, freeing capital for growth initiatives.
The acquisition of Alliance Automation, a specialist in industrial automation and digital solutions, adds over $60 million in annualised revenue and approximately 275 professional staff to Verbrec’s operations. This move expands Verbrec’s footprint to 18 offices across Australia and New Zealand, with a combined workforce of around 700 employees.
Enhancing Digital and Automation Capabilities
Alliance Automation brings a strong focus on Industry 4.0 technologies, including cyber security for operational technology, machine learning, and artificial intelligence. This complements Verbrec’s existing engineering, asset management, and operations capabilities, enabling the combined group to deliver integrated services across the entire asset lifecycle.
Both companies share a common client base, including major players like BHP, Rio Tinto, Santos, and Origin Energy, which presents opportunities for cross-selling and expanded service offerings. The acquisition also diversifies Verbrec’s revenue streams beyond its traditional energy sector focus into water, mining, and infrastructure industries.
Financial Outlook and Synergies
Verbrec’s management has a proven track record of improving profitability, having lifted EBITDA margins from a negative 0.6% in FY2023 to 9.2% in FY2025. The combined group aims to sustain this momentum, targeting an EBITDA margin between 8% and 10% by leveraging operational synergies such as office consolidations, ICT system integration, and cost efficiencies.
The company also anticipates organic growth through geographic expansion and capability investments, alongside inorganic growth via further acquisitions aligned with its strategic focus on energy transition and automation.
Positioning for a Sustainable Future
Verbrec’s strategic moves underscore its commitment to enabling a sustainable future for its clients and their customers. By focusing on advanced automation, digital transformation, and asset lifecycle management, the company is positioning itself to meet growing market demands driven by rising labour costs, supply chain shifts, and increasing regulatory requirements in cyber security and operational technology.
With the integration of Alliance Automation’s expertise and expanded geographic reach, Verbrec is set to enhance its service delivery and client engagement across Australia and New Zealand, reinforcing its reputation as a leading engineering and technology services provider.
Bottom Line?
Verbrec’s strategic divestment and acquisition signal a sharpened focus on automation and digital growth, setting the stage for enhanced margins and market presence.
Questions in the middle?
- How smoothly will Verbrec integrate Alliance Automation’s operations and culture?
- What specific organic growth opportunities will Verbrec prioritize post-transaction?
- How will the divestment impact Verbrec’s long-term revenue diversification strategy?
