Virtualwarea provider of extended reality technologies and business solutions with real-time 3D technology, has agreed the acquisition of the Swedish corporation Simumatik AB for 1.37 million of euros. The objective of this investment is to develop new markets in North America and the European Union.
The transaction will allow Virtualware to fully integrate Simumatik’s capabilities and team, accelerating its position in the enterprise software sector,” the Basque company points out. This acquisition is aligned with the Strategic Plan 2024-2026 from Virtualware.
The company considers that this investment is essential for develop new markets in North America and the European Union, once Simumatik’s technology and experience in digital twins and emulation, acquired over a decade, are fully incorporated.
Under the terms of the transaction, Virtualware will a cash payment of about 450,000 euros in exchange for the Swedish company, plus a payment of 110,000 Virtualware shares at a market price of 8.40 euros. Cuatrecasas has advised Virtualware on this operation.
Simumatik, founded in 2018 and based in Skövde, designs digital twin emulation solutions for industrial applications. It counts among its clients Volvo, Loramendi, Kornit Digital and educational sector players such as Mondragon University, Ohio University, Singapore Polytechnic and HoGent. These companies are creating digital twins of critical components and advanced manufacturing solutions.
“The implications of this acquisition will be substantial for Virtualware and the industry. Our offering to our customers will now include enhanced capabilities in digital twin technology, and our position in the market will intensify towards the delivery of solutions with 3D technology in real time”, explains Unai Extremo, CEO of Virtualware.
More value for the shareholder
With the acquisition of Simumatik, Virtualware management expects to increase shareholder value in the immediate future. Virtualware has been listed on Euronext Paris since April 2023. The company’s current market capitalization exceeds 38 million and its share price currently stands at 8.40 euros per share, 40% more than its initial IPO price of 6.00 euros. A recent report from the American equity analysis company Litchfield Hills Research assigns it a target price of 12.00 euros per share, according to company sources.
The corporation recorded revenues of 2,034 million in the first half of 2024, which represents a growth of 28.09% compared to the same period of the previous year. Virtualware’s ‘ebitda’ in the first half amounted to 344,539 euros, which represents a growth of 299.16% compared to 86,317 euros in the first half of 2023. Net profit was 199,164 euros.
The company is headquartered in Bilbao (Spain) and offices in Toronto (Canada) and Orlando (United States). Its flagship product, the VIROO platform, is an XR solution that enables companies and institutions around the world to easily access immersive technology. Virtualware’s customer portfolio includes GE Vernova, Ontario Power Generation, Gestamp, ADIF, the Spanish Ministry of Defense, Invest Windsor Essex, McMaster University, the University of El Salvador, EAN University and the Basque Government.
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