Vection Technologies to acquire Australian digital automation business

Enterprise-focused AI and extended reality solutions provider Vection Technologies (Vection) has executed a binding offer to acquire 100% of Digital Experience Labs (DXLabs).

DXLabs is an Australian digital transformation and solutions business with enterprise customers in government, insurance and adjacent sectors.

The company offers tools around process and workflow automation, intelligent rules engine automation and platform integration, positioned as complimentary to a business’ existing technology stack and AI technologies.

All  staff  of  DXLabs  will  remain with the company,  with  the  CEO  Luis  Nejo committed to  grow the business in key markets across Australia and Asia.

DXLabs reported 39%  revenue  growth  year-on-year  for  FY25 and the acquisition adds an immediate $3.5 million of revenue and $0.8 million EBIT to Vection with no debt.

The acquisition also “unlocks cross-sell opportunities by combining Vection’s AI and spatial  computing solutions with DXLabs’ specialisation in automation and integration platforms”, according to the company.

Vection Technologies MD Gianmarco Biagi said DXLabs’ automation and integration expertise is a perfect complement to the company’s software technologies.

“Together, we can offer customers  end-to-end  digital  transformation  solutions  that  are  faster  to  deploy  and  more  impactful,” he said.

“We are particularly excited about the cross-sell opportunities this creates which we expect to accelerate our growth across government and enterprise  markets  in  APAC.”

DXLabs CEO Luis Nejo said joining forces with Vection Technologies is a natural progression for DXLabs.

“Over the past eight years, we’ve built a strong reputation in advanced process automation, digital decisioning, and systems integration, with a loyal customer base across insurance, finance, government, and enterprise sectors,” he said.

“By becoming part of Vection, we gain access to their global XR and AI technologies, which will allow us to broaden our offering and create even greater value for our customers. Our team is excited to remain with the business and continue delivering for clients while also leveraging Vection’s global scale, thought-leadership and resources.

“This partnership unlocks significant growth potential, both for our people and our customers, and ensures DXLabs can continue to innovate at the forefront of digital transformation.”

The transaction is structured as an all-scrip offer with an upfront consideration of of $2.1 million (2.8x EBIT) and a performance-based earn-out, aligned to a maximum opportunity of between $0.3-$2.1 million in scrip (for 75%-150% of FY2025 EBITDA performance).

Completion is targeted for 31 October 2025, subject to satisfaction of the conditions.

In June, Vection won a $1 million contract from an unnamed client in the defence industry.