• Verbrec signs agreement to acquire Alliance Automation, adding over $60M in annualized revenue
• Acquisition enhances Verbrec's digital and automation capabilities, positioning it as a key partner for clients
• Combined entity aims to increase EBITDA margins to 8-10% over time

Verbrec Ltd has signed an agreement to acquire Alliance Automation, a digital-first company with a strong focus on the convergence of information technology and operational technology (Industry 4.0). The acquisition will add over $60 million in annualized revenue to Verbrec and expand its team to approximately 700 members across Australia and New Zealand. The strategic alignment between Verbrec and Alliance Automation will significantly enhance Verbrec's digital and automation capabilities, positioning it as a key partner for clients. Alliance Automation brings expertise in areas such as industrial automation, electrical engineering, cyber security, and emerging technologies like machine learning and artificial intelligence. The combined entity aims to increase EBITDA margins to 8-10% over time by realizing synergies and leveraging the expanded national footprint, larger client base, and integrated delivery model. Verbrec's management team has a proven track record of improving business performance, and the acquisition is expected to enable the company to pursue growth, deliver comprehensive services, and continue its journey toward sustainability.The transaction also includes the divestment of Verbrec's Competency Training business for $11.5 million, which strengthens the company's balance sheet and allows it to reinvest in growth opportunities. The strategic changes enable Verbrec to better serve its shared clients and engineer innovative solutions for energy transition, sustainable and smart mining, and robust water security.

The acquisition of Alliance Automation is expected to add over $60 million in annualized revenue to Verbrec on a pro-forma basis. The combined entity aims to increase EBITDA margins to 8-10% over time by realizing synergies.

The acquisition of Alliance Automation is a transformational step for Verbrec, significantly enhancing its digital and automation capabilities and positioning it as a key partner for clients in the energy, mining, and water sectors. The combined entity is well-positioned to pursue growth, deliver comprehensive services, and continue its journey toward sustainability.