Verbrec to acquire Alliance Automation for $5.5 million, divests Competency Training business
SYDNEY: Australian engineering services firm Verbrec Limited (VBC.AX) said on Wednesday it has agreed to acquire automation and control company Alliance Automation from Telstra Group Limited (TLS.AX) for an upfront cash consideration of A$5.5 million ($3.6 million).
The acquisition, outlined in a share purchase agreement, will see Verbrec take a 100% stake in Alliance Automation and its subsidiary DLM Automation, the company said in a statement.
Alliance Automation, one of Australia’s largest independent digital transformation and industrial automation providers, reported revenue of A$62.4 million for the 2025 financial year. The purchase price represents a multiple of five times the company’s FY2025 EBITDA.
The deal is poised to significantly expand Verbrec’s capabilities in automation, control systems, digital industries, machine learning, and cybersecurity. On a pro-forma basis, the combined entity is expected to have annualised revenue of approximately A$148 million and a workforce of around 700 people across 18 locations in Australia and New Zealand.
“The transaction will allow us to address our clients’ digital needs better than ever before,” said Verbrec Chief Executive Officer Mark Read.
The companies share a core client base, with 41% of Alliance Automation’s revenue derived from these mutual clients, presenting opportunities for cross-selling Verbrec’s “whole of asset lifecycle” services.
Verbrec will fund the acquisition through a combination of existing cash reserves and a new A$6 million business loan from Westpac. The transaction is expected to be completed within the 2025 calendar year.
The move follows a period of improved performance for Verbrec, which reported its EBITDA margin rose to 9.2% in FY2025 from -0.6% in FY2023.
Moreover, Verbrec has signed a definitive agreement to divest its Competency Training business to RelyOn for $11.5 million in cash, the company announced Wednesday.
The transaction, expected to close in early October, includes the transfer of Competency Training’s standalone operations, which generated $2.1 million in revenue during fiscal year 2023. Verbrec will retain training services directly tied to its core engineering offerings.
“This divestment strengthens our balance sheet and allows us to sharpen our focus on high-growth areas such as energy transition, industrial decarbonization, and digital transformation,” Verbrec said in a statement.
Proceeds from the sale will be used to reduce debt and fund strategic growth initiatives. The company emphasized its continued commitment to delivering value to shareholders and clients through targeted investments in engineering capabilities.
Verbrec’s move comes amid rising demand for specialized infrastructure and energy services across Australia and New Zealand. The company said it remains committed to providing integrated training solutions that complement its engineering portfolio.
($1 = 1.5276 Australian dollars)