Vection Adds $3.5M Revenue with DXLabs Acquisition, Eyes APAC Growth
Vection Technologies has formalised its acquisition of Australian digital transformation firm DXLabs, adding immediate revenue and expanding its footprint across the APAC region.
- Acquisition adds $3.5 million revenue and $0.8 million EBIT immediately
- DXLabs grew 39% year-on-year in FY25
- Deal structured as all-scrip with upfront $2.1 million consideration plus performance earn-out
- Strengthens Vection’s Australian delivery and enterprise customer base
- Unlocks cross-sell opportunities between AI spatial computing and automation platforms
Strategic Acquisition to Boost Vection’s APAC Presence
Vection Technologies Ltd (ASX:VR1) has taken a decisive step to deepen its presence in the Asia-Pacific region by executing a share sale agreement to acquire 100% of Digital Experience Labs Pty Ltd (DXLabs). This move follows Vection’s initial announcement in September 2025 and marks a significant milestone in its growth strategy focused on integrated XR and AI-powered digital transformation solutions.
DXLabs, an Australian-based digital transformation company, has demonstrated robust growth with a 39% increase in revenue year-on-year for FY25. The acquisition immediately adds $3.5 million in revenue and $0.8 million in EBIT to Vection’s financials, with no debt burden, underscoring the deal’s accretive nature.
Financially Disciplined and Performance-Linked Deal Structure
The transaction is structured as an all-scrip offer, with an upfront consideration of $2.1 million; equivalent to 2.8 times EBIT; and a performance-based earn-out tied to FY26 EBITDA. This earn-out mechanism, ranging from $0.3 million to $2.1 million in scrip, aligns incentives between Vection and DXLabs’ management, ensuring that future earnings growth is rewarded.
Importantly, the deal is capital-efficient, minimising dilution for Vection shareholders while providing a platform for sustainable growth. The retention of DXLabs’ CEO Luis Nejo and all staff signals a commitment to continuity and operational stability, which will be critical as integration efforts proceed.
Expanding Enterprise Reach and Unlocking Synergies
DXLabs brings a strong enterprise customer base spanning government, insurance, logistics, and lending sectors; areas where automation and digital transformation are increasingly vital. This complements Vection’s existing AI spatial computing capabilities, creating fertile ground for cross-selling and integrated solutions that leverage both companies’ strengths.
The integration is expected to be completed within a month post-acquisition, positioning Vection to capitalise quickly on new market opportunities. By combining XR, AI, and automation platforms, Vection aims to enhance its value proposition to enterprise clients seeking to optimise operations and accelerate digital transformation.
Looking Ahead
Completion of the acquisition is targeted for 9 April 2026, subject to satisfactory due diligence and other conditions. If successful, this acquisition will mark a pivotal expansion for Vection, reinforcing its position as a leading provider of integrated digital ecosystems in the APAC region and beyond.
Bottom Line?
Vection’s acquisition of DXLabs sets the stage for accelerated growth and deeper market penetration in Australia and APAC.
Questions in the middle?
- Will Vection meet the earn-out targets tied to DXLabs’ FY26 EBITDA performance?
- How effectively will Vection integrate DXLabs’ operations and retain key clients?
- What new cross-sell opportunities will emerge from combining AI spatial computing with automation platforms?
