Vection Technologies Ltd (ASX:VR1) has completed its acquisition of Australian digital transformation company DXLabs, adding immediate revenue and earnings while expanding its footprint across the Asia-Pacific region.
The deal brings an additional $3.5 million in revenue and $0.8 million in EBIT to Vection, alongside a business that recorded 39% year-on-year revenue growth in FY25. All DXLabs staff, including CEO Luis Nejo, will be retained as the company looks to scale operations across Australia and Asia.
The acquisition was completed via an upfront consideration of $2.07 million, paid in Vection shares, with further performance-based earn-out payments of up to $2.1 million subject to EBITDA targets.
Strategically, the transaction strengthens Vection’s presence in Australia, adding enterprise customers across sectors including government, insurance, logistics and lending, while expanding its delivery capability in automation and digital transformation.
Cross-sell and integration upside in focus
The acquisition is also expected to unlock cross-sell opportunities by combining Vection’s AI and spatial computing technologies with DXLabs’ expertise in automation and integration platforms.
Management said integration is expected to be completed within a month, with the combined business positioned to drive additional revenue through shared customer relationships and complementary technology offerings.
From a deal structure perspective, part of the upfront consideration remains subject to escrow for up to three years, while the earn-out component is tied to achieving between 75% and 150% of FY2025 EBITDA performance and is expected to be settled by September 2026.
With completion now finalised, Vection’s focus shifts to integrating DXLabs and leveraging the expanded customer base and capabilities to accelerate growth across its core markets.