• Immediately adding $4m recurring revenue and fast tracking profitability
• Acquisition of leading Australian digital marketing business and long-term channel partner
• Accelerating AI transformation and cross-selling opportunities

XPON Technologies Group Ltd has entered into a binding agreement to acquire 100% of the shares in Alpha Digital Design Consultants (Aust) Pty Ltd for a total consideration of up to $2.61 million. The upfront consideration of $1.72 million comprises $180,000 in XPON shares and a $1.54 million vendor loan at 8% p.a. over 3 years. An additional $891,000 is payable over 2 years based on Alpha Digital achieving EBITDA targets of $0.8 million in FY26 and $1.1 million in FY27. The acquisition is expected to be completed in May 2025, subject to standard settlement conditions. The acquisition is strategically aligned with XPON's growth strategy, enhancing its position in the high-growth AI marketing sector. It provides XPON with a strong foothold in key vertical industries, access to strategic blue-chip clients, and 87% recurring revenue. XPON will leverage its AI capabilities to transform Alpha Digital, driving efficiency and competitive advantage. The combined offering will provide customers with a comprehensive suite of integrated AI marketing solutions, maximizing value and growth. The acquisition is immediately accretive, adding $4 million in recurring revenue and fast-tracking XPON's path to profitability, with an expected $0.8 million EBITDA in FY26.

The acquisition is expected to add $4 million in recurring revenue and deliver over $0.8 million EBITDA in FY26.

The acquisition establishes a repeatable model for future value-accretive acquisitions as XPON continues to consolidate the fragmented digital marketing industry and expand its AI-powered marketing solutions.