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ServTech Global to acquire virtual reality developer; eyes international growth opportunities

The all-stock acquisition of Vection will be conducted at an issue price of 2 cents, with a deferred, performance-based, consideration component.
Lamborghini VR simulator showcased by Vection’s proprietary VR technology
Lamborghini VR simulator showcased by Vection’s proprietary VR technology

ServTech Global Holdings Ltd (ASX:SVT) will be conducting a high-profile international investor roadshow following the proposed acquisition of software developer Vection.

Vection is an established, European full-service software development company with advanced Augmented Reality (AR) and Virtual Reality (VR) development capabilities.

The software developer has identified a niche market assisting luxury brands and corporates to establish a direct link between their products and target consumer, turning simple buying decisions into a comprehensive experience.

This is done via a simulated virtual showroom for customers to visualise and interact with products in high quality and definition.

Virtual showroom

With this offering and other related applications, Vection has built a portfolio of world-renowned clients including Ferretti, Lamborghini, Maserati, Philip Morris, Volvo, Fendi Casa and many others.

Vection has delivered impressive revenue and EBITDA growth, with revenues increasing six-fold organically from $157,000 in its inaugural FY15 year to about $1.1 million in FY18 with a ~20% EBITDA margin.

There are clear synergies between ServTech’s core software development business unit and Vection’s software development offerings.

In addition to developing software for a variety of target market segments, both business units have developed Software as a Service (SaaS) models which are ready to be commercialised in scale, globally, leveraging the combined group’s market reach.

International investor roadshow

As part of the international investor roadshow and the acquisition of Vection, the company intends to raise $2 million from sophisticated, professional and wholesale investors.

ServTech chairman Bert Mondello said: “The board is very excited to embark on this investor roadshow which is aimed at supporting the company as it takes the next step as an international, end to end software developer.

“The company has received significant inbound enquiries from a number of Institutional and sophisticated investors leading into the roadshow.”

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