• Executing agreements to acquire Blue Hire and Matrix Hydro Services
• Acquisitions expected to more than double Babylon's EBITDA
• Creating a high-margin, integrated rental and technical services platform

Babylon Pump & Power Ltd (ASX: BPP) has executed agreements to acquire two strategic businesses, Blue Hire and Matrix Hydro Services, in a transformational move that is expected to significantly grow its scale, capabilities and earnings. The acquisitions comprise a 100% interest in Blue Hire, a WA-based provider of pump and power equipment for dry hire, and a 100% interest in Matrix Hydro Services, a WA-based specialist in aquifer testing and groundwater services. The total consideration for the acquisitions is expected to be between $24 million and $26.2 million. The acquisitions are expected to complete by the end of FY25 and will be funded through a combination of debt and a $3.5 million equity raise. The combined Babylon group is expected to have FY26 financial targets of approximately $54 million in revenue and $14 million in EBITDA, based on the FY24 performance of the three entities. The acquisitions are expected to be EPS accretive and create a high-margin, integrated rental and technical services platform for Babylon.

The combined Babylon group is expected to have FY26 financial targets of approximately $54 million in revenue and $14 million in EBITDA, based on the FY24 performance of the three entities.

Babylon is now a scaled, specialist provider across both equipment rental and technical services, offering full-spectrum end-to-end solutions to major mining and industrial clients. The company is positioned for a step-change in scale and margin profile, with the acquisitions expected to more than double its EBITDA based on FY24 performance.