Vection Technologies raises $21m, buys DXLabs and leans into defence-led growth

Key highlights (1:00pm AEST, Mon 29 Sep 2025)

• $21m equity raise at $0.06 to accelerate international sales, repay debt and fund working capital; ~350m new shares to be issued. 
• Binding deal to acquire DXLabs (Australia) for $2.1m in scrip up-front plus an FY26 earn-out; immediate $3.5m revenue and $0.8m EBIT added, minimal dilution (~2%). 
• Sales pipeline ~A$75m under negotiation; NATO framework agreement expanded to potential A$47m. 
• Strategy anchored in spatial computing + AI; 1H25 revenue $17.4m (pro-forma, +60% pcp) and positive adjusted EBITDA, with 35–40% blended gross margins tracking for FY25. 
  
   

Vection Technologies (ASX: VR1) is doubling down on a go-to-market plan that mixes proprietary spatial computing (VR/AR/XR/MR) with AI for enterprise and government customers. The company says a $21m placement at $0.06 a share—priced at a discount to recent VWAP measures—will fund international sales expansion (defence, retail, healthcare), debt reduction, and working capital, positioning it to compete for larger, multi-year contracts. 

Management frames the raise as a way to turn a growing order pipeline (~$75m) into revenue more quickly, helped by the upsized NATO framework that now points to a potential $47m program of work with a top-tier EU contractor. 

What the acquisition adds

Alongside the placement, Vection signed a binding offer to acquire Digital Experience Labs (DXLabs), a fast-growing Australian automation and systems-integration firm serving government, insurance, logistics and lending. The deal brings $3.5m revenue and $0.8m EBIT (no debt) into the group, with the $2.1m all-scrip upfront pricing equating to 2.8× EBIT; an FY26 earn-out aligned to profit delivery is also in place. All staff and CEO Luis Nejo remain, giving Vection a stronger APAC delivery base and natural cross-sell into its AI/XR stack. 

CEO Gianmarco Biagi on the raise: “We are very proud and satisfied with the result achieved in a very short time, raising $21 million in capital… [to] invest and therefore grow very quickly in the defense, retail, and healthcare sectors, with vertical investments in technology, management, and international expansion for Vection’s short-medium term growth.” 

Biagi on the acquisition: “This acquisition is a highly disciplined and value-accretive step… [It] strengthens our Australian footprint, adds immediate revenue and EBIT… and unlocks cross-sell opportunities… consistent with our strategy of capital-efficient, accretive growth.” 

DXLabs CEO Luis Nejo: “Joining forces with Vection… allows us to broaden our offering and create even greater value… leveraging Vection’s global XR and AI technologies.” 

A clearer operating picture

Vection’s latest investor materials emphasise momentum: 1H25 pro-forma revenue of $17.4m (+60% pcp), positive adjusted EBITDA, and a path to 35–40% gross margins from a mix of services/installation, SaaS products/support, and hardware/cyber appliances. The company also reports maiden positive FY underlying EBITDA (~$2.8m) and two consecutive quarters of positive operating cash flow. 

The group targets a massive TAM by 2030—about US$1.07tn for AI (22% CAGR) and US$827bn for spatial computing (28% CAGR)—with a single-platform approach (IntegratorXR) intended to make cross-selling simpler across design, training, logistics and after-sales. 

Why defence is front and centre

While Vection is sector-agnostic, defence is becoming the largest near-term revenue driver. Slides detail a multi-year NATO-related program with a top EU contractor that scaled from an initial pilot to a cumulative ~$40m over ~2.5 years, plus follow-on orders and the largest single contract win ($22.3m) in company history. Solutions range from AI-capable edge data centres to spatial computing for training and situational awareness, all aimed at data-driven decision-making and asset protection. 

That push aligns with Vection’s thesis that higher defence spend, supply-chain security and mission-critical software will underpin durable demand for its AI + immersive technologies. 

What the numbers could mean for investors

• Funding certainty: With the placement complete, Vection flags a record net-cash position, giving it room to pursue large tenders and integrate DXLabs without stretching the balance sheet. 
• Pipeline conversion: Management says conversion rates have improved, and it has already won ~$30m to be delivered in FY26, with recurring revenue around 35% and rising—useful for smoothing cash flows. 
• APAC growth lever: DXLabs offers ready-made enterprise customers and automation expertise that can pair with Vection’s XR/AI to speed deployment and deepen account penetration. 
  
   

Balanced view: opportunities and risks

There’s a lot to like in the defence contract traction, expanding recurring base, and capital-light bolt-on acquisition. But investors should keep an eye on execution variables common to scale-ups: integrating teams, hiring for delivery, hardware supply timing, and customer acceptance cycles in defence and government. Vection’s own materials caution that forecasts are not guarantees and outcomes depend on pipeline conversion, product rollout and cost control. 

For readers new to XR + AI: why this matters

Think of Vection’s platform as a way to turn 3D data into action—training soldiers in immersive simulations, guiding technicians through maintenance workflows, or giving planners real-time visual dashboards fed by AI at the edge. In industries where errors are costly and decisions are time-critical, that can slash training time, cut onboarding costs, and boost uptime, which is exactly what defence and heavy industry want to pay for. 

Bottom line

Vection is pushing from proof-points to scale: cash in the bank from a $21m raise, a bolt-on acquisition to accelerate APAC delivery, and a contract book in defence that is getting deeper and longer. If management converts more of the $75m pipeline, executes on NATO-linked programs and expands recurring software revenues, the story will look less like an XR/AI concept and more like a software-plus-infrastructure provider with a durable niche. 

Market snapshot

At the time of writing this article, VR1 traded at $0.063.