• Babylon to acquire Matrix Hydro Services, a specialist in aquifer testing and groundwater services
• Acquisition strengthens Babylon's water capabilities and consolidates ownership of a key competitor
• Matrix founders to join Babylon's management team, enhancing technical depth

Babylon Pump & Power Limited (ASX: BPP) has entered into a binding agreement to acquire 100% of Matrix Hydro Services Pty Ltd (Matrix), a specialist provider of aquifer testing and groundwater management services to Western Australia's resources sector. The acquisition further strengthens Babylon's water management capabilities and supports its strategy to deliver integrated, high-margin services to Tier 1 mining clients. The acquisition of Matrix is subject to the satisfaction of various conditions precedent. Matrix's management brings decades of hydrogeological field experience and will bolster Babylon's capability in delivering turnkey water management solutions. Matrix's technical expertise and long-standing client relationships make it highly complementary to Babylon's existing operations. Both of Matrix's co-founders will join the Babylon executive team, enhancing the group's technical depth and leadership capacity. The total consideration payable for the acquisition of Matrix comprises an upfront payment of $2.0 million in cash and $500,000 in fully paid ordinary Babylon shares, and an additional deferred consideration of up to $1.1 million based on Matrix achieving a minimum of $800,000 of EBITDA for the financial year ending 30 June 2026. The maximum total consideration represents a purchase price multiple of approximately 3.27x FY26 forecast EBITDA of $1.1 million, which is an attractive and value-accretive outcome for Babylon shareholders. To fund the upfront cash component of the Matrix acquisition and provide working capital, Babylon also announces an Accelerated Non-Renounceable Entitlement Offer (ANREO) to raise approximately $3.5 million.

The acquisition of Matrix is expected to enhance Babylon's water services division and support its strategy to deliver integrated, high-margin services to Tier 1 mining clients. Matrix is forecast to achieve EBITDA of $1.1 million for the financial year ending 30 June 2026.

The acquisition of Matrix positions Babylon as a full-service provider in dewatering, aquifer diagnostics and water project management, with enhanced technical depth, a strong WA footprint and growing Tier 1 client exposure. Babylon views this transaction as an important milestone in its broader inorganic growth strategy, with future acquisitions expected to be debt-funded and focused on value-accretive opportunities.