Verbrec’s $60M Alliance Automation Deal Signals Digital Leap

A Strategic Acquisition to Expand Reach and Capabilities

Verbrec Limited, a key player in engineering and asset management, has announced a significant acquisition of Alliance Automation from Telstra. This move is set to add over $60 million in annualised revenue and expand Verbrec’s footprint to 700 employees across 18 locations in Australia and New Zealand. The acquisition marks a pivotal step in Verbrec’s evolution, enhancing its digital innovation capabilities and broadening its sector reach.

Alliance Automation, established in 2010, is a leading independent electrical engineering and industrial automation services provider. Its expertise lies in the convergence of information technology and operational technology; commonly referred to as Industry 4.0; with a growing focus on machine learning and artificial intelligence. These capabilities are increasingly sought after by clients navigating the digital transformation of critical infrastructure.

Diversification and Synergies Across Sectors

Verbrec’s core strength has traditionally been in the energy sector, while Alliance Automation predominantly serves the mining and water sectors. This complementary client base offers a strategic diversification that balances revenue streams and opens cross-selling opportunities. The combined entity is positioned to leverage synergies by integrating delivery models and expanding service offerings, particularly in automation, cyber security, and data analytics.

Verbrec’s CEO Mark Read highlighted the company’s track record of improving operational efficiency and profitability, with EBITDA margins rising from negative in 2023 to 9.2% in 2025. The acquisition aims to sustain this momentum, targeting combined EBITDA margins between 8% and 10% by realising operational synergies and optimising project selection.

Embracing Industry 4.0 and Future Growth

The acquisition significantly boosts Verbrec’s exposure to Industry 4.0 technologies, including the Internet of Things, cyber security, AI, and machine learning. These areas are experiencing strong growth driven by clients’ needs to optimise asset performance and comply with evolving regulatory requirements for critical infrastructure protection.

Verbrec’s digital twin software, StacksOn, combined with Alliance Automation’s digital-first approach, positions the group as a comprehensive partner for clients seeking to navigate the energy transition, sustainable mining, and water security challenges. The transaction also coincides with Verbrec’s divestment of its Competency Training division for $11.5 million, a move designed to strengthen the balance sheet and fund growth initiatives.

Overall, the acquisition represents a transformative step for Verbrec, expanding its scale, diversifying its revenue base, and enhancing its technological capabilities. The combined company is well placed to capture emerging opportunities in a rapidly evolving industrial landscape.