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Vection Technologies (ASX:VR1) - Managing Director, Gianmarco Biagi - The Market Herald
Managing Director, Gianmarco Biagi
Source: Confindustria Emilia
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  • Vection Technology (VR1) has signed a binding agreement to acquire the issued capital of technology company, JMC Group, in an all-scrip deal
  • The acquisition is set to accelerate Vection’s expansion within Europe, the Middle East and Africa
  • Completion of the acquisition is subject to the completion of due diligence and all parties obtaining relevant approvals from regulators and third parties
  • Vection Technologies is up 6.45 per cent, trading at 6.6 cents at 12:15 pm AEST

Vection Technology (VR1) has signed a binding agreement to acquire the issued capital of technology company, JMC Group.

The acquisition is set to accelerate Vection’s expansion within Europe, the Middle East and Africa, while further integrating its XR portfolio with virtual reality and augmented reality, artificial intelligence, and information and communication technology.

JMC will be purchased in an all-scrip deal at a minimum of 10 cents per share, representing a dilution of around six per cent for existing shareholders. JMC’s Founder and CEO, Jacopo Merli, will also join the Vection management team to drive further growth.

At completion of the acquisition, Vection will issue Mr Merli €4 million (roughly A$7 million) worth of fully paid ordinary shares at an issue price of 10 cents.

Over the past three years, JMC has seen an average of $9 million in unaudited revenue, with around $1 million in unaudited adjusted EBITDA, closing 2020 with a positive net operating working capital position of $1.8 million.

Managing Director of Vection Technologies Gianmarco Biagi says the transaction represents a significant step in the company’s vertical growth strategy to assist companies in their digital transformation plans via next generated integration XR solutions.

“Via this acquisition we gain a significant technological and geographical advantage and the addition of key management within the European region, unlocking significant global growth opportunities for the company.

“We remain focussed on completing our 2021 M&A acquisition strategy via the expansion in the U.S. while progressing on our previously stated commercial objectives.”

Completion of the acquisition is subject to the completion of due diligence and all parties obtaining relevant approvals from regulators and third parties.

Vection Technologies is up 6.45 per cent, trading at 6.6 cents at 12:15 pm AEST.   

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