Volt to Acquire 4D Delta with $7.25M Deal Backed by $4M Placement
Volt Group Limited is set to acquire Perth-based 4D Delta Pty Ltd for $7.25 million, adding a profitable digital asset inspection business to its portfolio. The acquisition is supported by a $4 million capital raise and aims to accelerate Volt’s growth in technology-enabled resource services.
- Acquisition of 4D Delta for $7.25 million including cash and Volt shares
- 4D Delta specializes in digital asset inspection and monitoring for resources sector
- Forecast CY26 revenue of $4.2–4.7 million and EBITDA of $1.3–1.6 million
- Concurrent $4 million conditional placement to fund acquisition and working capital
- Acquisition expected to complete by late December 2025, subject to shareholder approval
Strategic Acquisition Bolsters Volt’s Technology Portfolio
Volt Group Limited (ASX, VPR) has announced a significant step in its expansion strategy with the planned acquisition of 4D Delta Pty Ltd, a Perth-based company specializing in digital asset inspection technology. The deal, valued at $7.25 million, combines cash payments and the issuance of Volt shares, positioning Volt to enhance its offerings in the industrial technology sector, particularly within the resources industry.
4D Delta brings to Volt a proprietary cloud platform and advanced software capabilities that enable high-speed processing of 3D laser scanning and photogrammetry data. These technologies support optimized maintenance management and condition monitoring for critical assets in mining and mineral processing, addressing a growing demand for digital solutions that improve operational efficiency and safety.
Financial and Operational Highlights
Forecasts for calendar year 2026 project 4D Delta’s revenue to range between $4.2 million and $4.7 million, with EBITDA expected between $1.3 million and $1.6 million. The acquisition multiple, based on EBITDA, is approximately 5.0x, reflecting a reasonable valuation for a profitable and scalable business. Importantly, 4D Delta maintains strong relationships with blue-chip clients such as Rio Tinto, BHP, Alcoa, and South32, underscoring its established market presence.
To support the acquisition and ongoing growth initiatives, Volt is concurrently conducting a conditional placement to raise $4 million at $0.135 per share. The capital raising has attracted firm commitments from institutional and sophisticated investors, including participation from Volt directors and 4D Delta vendors, signaling confidence in the strategic direction.
Growth Potential and Market Expansion
The acquisition aligns with Volt’s medium-term vision to build a diversified technology-enabled equipment and services company targeting $10 million-plus EBITDA. 4D Delta’s scalable cloud platform and recurring revenue model complement Volt’s existing product lines, such as Wescone crushers and EcoQuip solar light towers, broadening the company’s footprint in the resources sector.
Moreover, 4D Delta’s strategic alliance with Wingfield Scale & Measure in the USA opens avenues for international expansion, particularly in the cement and lime industries. Volt’s management emphasizes the potential for cross-selling and leveraging combined technical expertise to accelerate growth across multiple verticals including steel, power, oil & gas, and chemicals.
Transaction Details and Next Steps
The upfront consideration includes $3.625 million in cash and an equivalent value in Volt shares subject to an 18-month escrow. Additional contingent payments of up to $2.25 million are linked to 4D Delta’s EBITDA performance over 2026 and 2027, introducing an element of performance-based risk and reward. Completion is expected by late December 2025, contingent on shareholder approval and customary conditions.
Volt shareholders will vote on the acquisition at an extraordinary general meeting scheduled for December 2025. The company’s advisers, Sternship Advisers and Thomson Geer, have supported the transaction, which is poised to transform Volt into a more robust and diversified technology services provider with enhanced earnings visibility.
Bottom Line?
Volt’s acquisition of 4D Delta marks a pivotal expansion, but execution of growth and integration will be key to unlocking full value.
Questions in the middle?
- How will Volt integrate 4D Delta’s technology and client base to maximize cross-selling opportunities?
- What are the risks associated with the contingent consideration tied to future EBITDA performance?
- How might market conditions affect the success of the $4 million capital raising and subsequent growth plans?
