Vection Technologies boosts AI capabilities with $12m acquisition of The Digital Box

Perth-based real-time software provider Vection Technologies (ASX: VR1) is set to boost its artificial intelligence (AI) capabilities with the $12 million acquisition of Italian generative AI company The Digital Box (TDB).

Payment will include an upfront consideration of 157 million shares, comprising 142.7 million shares to TDB and 14.3 million shares (representing 10% of the total transaction value) to Exchange Capital for introductory and advisory work performed on the deal.

A further issue of 17 Class A performance rights, converting to an aggregate of up to 23.5 million shares, will be made subject to TDB achieving revenue of $9.5m and EBITDA of $1m for FY25.

AI and XR boost

Vection managing director Gianmarco Biagi said the acquisition would complement the company’s ecosystem and enhance its AI and extended reality (XR) capabilities.

“This strategic investment in AI and XR will ensure we remain at the forefront of technological advancement and drive long-term growth,” he said.

“We expect these innovations will provide us with a significant competitive advantage and allow us to deliver unique solutions to the market.”

Upon completion of the transaction, Vection will integrate TDB staff and technologies into its global business, creating a range of cross-sell and growth opportunities for both companies.

Former Apple chief operating officer Marco Landi will also be joining Vection’s board of directors.

Capital raising

Vection has received firm commitments to raise $2 million through the placement of 200 million fully-paid ordinary shares at $0.01 each, representing a discount of 23.7% on the company’s 15-day volume-weighted average price.

Investors will receive one free-attaching listed option for every share held, with an exercise price of $0.018 and a three-year expiry.

Proceeds will be used to support the TDB acquisition and strengthen Vection’s balance sheet.