• Verbrec signs agreement to acquire Alliance Automation, expanding revenues and capabilities
• Alliance Automation generated $62 million revenue in FY2025, representing a major step change for Verbrec
• The combined group will have approximately 700 team members across 18 locations in Australia and New Zealand

Verbrec Limited (ASX: VBC) announces the signing of a share purchase agreement to acquire Alliance Automation Pty Ltd and its subsidiary DLM Automation Pty Ltd from Telstra Limited for $5.5 million up-front cash consideration. Founded in 2010, Alliance Automation is one of Australia's largest independent providers of digital transformation, cyber security and industrial automation integration services, with a developing capability in machine learning and artificial intelligence. The transaction represents a major step-change for Verbrec's capability and services offering, expanding its national presence and allowing it to deliver a broader range of services to clients. On a pro-forma basis, the transaction is anticipated to add over $60 million in annualised revenue and will result in a combined group with approximately 700 team members across 18 locations in Australia and New Zealand. The strategic direction of Verbrec and Alliance Automation are strongly aligned, and the combined group is poised to maximise its integrated delivery model and reinforce its reputation as the recognised partner for a sustainable future.

The transaction is anticipated to add over $60 million in annualised revenue to the combined group, based on FY2025 financial results.

The combined Verbrec and Alliance Automation management teams are confident of improving the merged Group's EBITDA margins in the near term.