Way2VAT Adds $3M Revenue and $875K EBITDA with RBC VAT Buy, Raises $4.1M Capital
Way2VAT Ltd has secured a strategic acquisition of UK-based RBC VAT Limited alongside a $4.1 million placement, accelerating its expansion in VAT compliance and consultancy services.
- Acquisition of RBC VAT Limited for approximately AUD 4 million over two years
- Pro forma FY25 revenue addition of AUD 3 million and EBITDA of AUD 875,000
- Placement raising $4.1 million at $0.008 per share to fund acquisition and growth
- Debt facility of approximately AUD 1 million secured to support acquisition payment
- Combined client base to exceed 500 globally, enhancing cross-sell opportunities
Strategic Acquisition to Expand VAT Compliance Services
Way2VAT Ltd (ASX – W2V), a global fintech leader specialising in automated VAT claim and return solutions, has announced a binding agreement to acquire 100% of RBC VAT Limited, a UK-based VAT advisory and compliance specialist. The acquisition, valued at approximately AUD 4 million payable over two years, marks a significant milestone in Way2VAT’s growth strategy focused on expanding its VAT compliance and consultancy services.
RBC VAT, founded in 2003 and headquartered in London, brings a robust client base of 70-80 multinational companies and deep expertise in European VAT regulations. The acquisition is expected to be earnings accretive from day one, adding a pro forma FY25 revenue of AUD 3 million and EBITDA of AUD 875,000, representing attractive multiples of 1.4x revenue and 4.6x EBITDA.
Capital Raising and Debt Facility to Support Growth
To fund the acquisition and support ongoing growth, Way2VAT has secured firm commitments to raise $4.1 million through a placement priced at $0.008 per share, matching the company’s last traded price. The placement will be executed in two tranches, with the first tranche expected to settle imminently and the second tranche subject to shareholder approval in November 2025.
Additionally, Way2VAT has arranged an 18-month debt facility of approximately AUD 1 million with Bank Hapoalim, secured against the shares of RBC VAT. This facility will assist in funding the initial acquisition payment and provide working capital as the company progresses toward cash flow positivity.
Synergies and Growth Prospects
Way2VAT’s CEO and Founder, Amos Simantov, highlighted the strategic fit of RBC VAT within the company’s four-pillar growth framework. The acquisition complements Way2VAT’s technology platform with RBC VAT’s in-house consulting capabilities and global client relationships, creating significant upsell and cross-sell opportunities across the US, UK, and EU markets.
The combined entity’s client base will exceed 500 multinational companies, positioning Way2VAT to accelerate its path to profitability, with expectations to achieve a positive profit and loss position in Q4 2025 and cash flow positivity by 2026, contingent on timely government collections.
Outlook and Market Position
The European VAT compliance sector remains fragmented, offering further acquisition opportunities for Way2VAT to consolidate profitable businesses and enhance its market-leading technology solutions. The strong support from existing and new investors, including Thorney Investment Group, underscores confidence in Way2VAT’s growth vision combining organic expansion with strategic acquisitions.
As the acquisition nears completion, subject to customary conditions and no material adverse changes, market participants will be watching closely to see how effectively Way2VAT integrates RBC VAT and leverages its expanded capabilities to capture a larger share of the global VAT compliance market.
Bottom Line?
Way2VAT’s acquisition and capital raise set the stage for accelerated growth, but integration execution will be key to unlocking value.
Questions in the middle?
- How will Way2VAT integrate RBC VAT’s consulting services with its AI-driven platform?
- What are the risks if government tax authority collections delay, impacting cash flow forecasts?
- Will Way2VAT pursue further acquisitions to consolidate fragmented European VAT compliance markets?
