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Vection Technologies (ASX:VR1) to acquire Blank Canvas Studios

Technology
ASX:VR1      MCAP $25.91M
15 April 2021 11:50 (AEST)
Vection Technologies (ASX:VR1) - Managing Director, Gianmarco Biagi

Source: Confindustria Emilia

Vection Technologies (VR1) has signed a definitive agreement to acquire architectural visualisation studio Blank Canvas Studios.

Founded in Australia in 2017, Blank Canvas specialises in architectural visualisation (archviz) technology. The technology uses 3D imagery and 3D animation to virtually exhibit real estate properties and other buildings.

With studios in Sydney and Perth, Blank Canvas has partnered with some of the countries’ leading residential and commercial developers. These include Blackburne, Megara, and Development Victoria, as well as ASX-listers Mirvac Group (MGR), Finbar Group (FRI), Mustera Property Group (MPX), Vicinity Centres (VCX), AMP Capital (AMP) and Dexus Wholesale Property Fund (DXS). 

By acquiring 100 per cent of Blank Canvas, Vection Technologies plans to leverage the studio’s technology and expertise to expand its 3D, virtual reality (VR) and augmented reality (AR) offerings in various industries. In particular, the company hopes to attract more mid-market customers in the architecture, engineering and construction (AEC) and real estate sectors. 

Vection Technologies’ Managing Director, Gianmarco Biagi, said that entire industries are experiencing the transformational power of real-time 3D technologies.

“In this context, Blank Canvas will enable Vection Technologies to deliver seamless, AEC and real estate industry-specific real-time 3D solutions, expanding our market penetration and network throughout Australia and globally,” he said.

“By leveraging our global infrastructure and market positioning, we believe that Blank Canvas can greatly improve its operating performance and margins with an expanded product breadth and scale, while representing the first foundational step in our Australian growth plan,” he added.

Vection Technologies will pay a combination of cash, ordinary shares and performance rights as consideration for the acquisition. Blank Canvas’ founder, Justin Thomas Bourn, will receive $250,000 in cash at the transaction settlement. 

The company will also pay an amount equal to the settlement cash on June 30, 2021. The settlement cash amount will equal settlement trade debtors plus settlement work in progress, minus settlement liabilities, plus net cash, minus unpaid trade debts, minus additional liabilities, minus unpaid work in progress.

Vection will issue $250,000 worth of fully paid ordinary Vection shares at the 20-day volume-weighted average share price prior to the date of settlement. Finally, the company will issue three performance rights to Paul Clayton, if Blank Canvas achieves certain revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) targets over the next three years. 

Vection Technologies is up 10 per cent, trading at 9.9 cents per share at 10:10 am AEST.

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