SYDNEY — Vection Technologies Ltd (ASX:VR1) said on Tuesday it will acquire Hong Kong and Singapore-based digital marketing agency Monogic Limited in a scrip-only deal aimed at accelerating its expansion across the Asia-Pacific region.
The acquisition, expected to close by Dec. 31 pending regulatory and shareholder approvals, will see Vection issue up to A$1.6 million (US$1.04 million) in shares, including an upfront consideration of A$976,000 and a performance-based earn-out of up to A$628,000.
Monogic, which serves large clients in the food & beverage, hospitality, property, and utilities sectors, reported FY2025 revenue of A$1.8 million and EBITDA of A$275,000, implying a 3.5x EBITDA acquisition multiple.
“This transaction is a strategic evolution of Vection’s mission to connect technology, creativity, and data into a single digital transformation framework,” said Managing Director Gianmarco Biagi.
The deal follows Vection’s September acquisition of Australian-based DXLabs and is expected to deliver cross-selling opportunities for its AI and spatial computing products. Monogic’s team will be retained under new employment and performance-share agreements.
Vection said the acquisition would be immediately earnings accretive and would help reduce seasonality in its business. The upfront share issuance is expected to dilute existing shareholders by only 1.1% to 1.8%.