Vysarn closes A$60M Welltech deal, targets 37% EPS accretion
What's the deal? Vysarn LimitedDealroom has a profile for this one. Try Dealroom → (ASX: VYS) has completed its acquisition of Technologies International Group Pty LtdDealroom has a profile for this one. Try Dealroom →, trading as WelltechDealroom has a profile for this one. Try Dealroom →, closing the July transaction on September 3. The deal carries total potential consideration of up to about A$60 million, including an upfront cash-and-share component and deferred consideration tied to future EBITDA.
What does Welltech add? Operating since 1995, Welltech provides water and sewerage-management services across civil infrastructure, utilities, government, and resources. Its three main businesses are construction water supply, sewer and wastewater bypass operations, and water drilling.
Welltech's customers include Melbourne WaterDealroom has a profile for this one. Try Dealroom →, Fulton HoganDealroom has a profile for this one. Try Dealroom →, NRW HoldingsDealroom has a profile for this one. Try Dealroom →, BHPDealroom has a profile for this one. Try Dealroom →, Water Corporation, John Holland, and Rio TintoDealroom has a profile for this one. Try Dealroom →. That broadens Vysarn's exposure beyond the Western Australian resource-sector work that historically formed much of its revenue.
By the numbers: Vysarn expects the deal to lift earnings per share by more than 37.3% on a pro forma FY26 basis. Management said Welltech's upfront valuation equated to about 3.6 times maintainable EBITDA, based on unaudited FY26 performance and excluding deferred consideration shares.
The structure includes A$37.25 million of upfront cash and shares, plus up to A$10 million of deferred consideration over three years. Those payments are tied to EBITDA targets of A$11 million in the first earn-out year, A$12.5 million in the second, and A$13 million in the third.
How it was funded: Vysarn raised A$65.3 million through a fully underwritten placement, issuing about 62,200,000 shares at A$1.05 each. That high accretion is notable given the equity issue; the deal had to add substantial earnings to avoid diluting EPS.
What could go wrong? The accretion depends on Welltech's EBITDA proving sustainable after integration. Separately, Vysarn disclosed on the same day that its NewGround acquisition had been delayed, with discussions continuing over an extension.
VYS closed September 3 at A$1.005, down 0.99% from A$1.015. The stock remains about 44% higher year to date, despite falling from A$1.10 on August 28.
The signal: The deal reflects Vysarn's push to consolidate the water-services sector and diversify away from its Western Australian resources base. A low acquisition multiple paired with earn-out targets ties the deal's payoff directly to Welltech's continued growth.
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