EPX Raises $2.14M Placement at 20% Discount to Fund Wattwatchers Deal

Strategic Acquisition Under Deed of Company Arrangement

EPX Limited (ASX, EPX) has taken a significant step in expanding its footprint in the energy monitoring and building performance sector by acquiring Wattwatchers Pty Limited. The acquisition was executed through a Deed of Company Arrangement (DOCA), a mechanism that allowed EPX to purchase Wattwatchers while it was under voluntary administration. The deal, valued at $1.05 million, includes a mix of cash and shares, with $550,000 payable in cash and $500,000 in EPX shares issued at a minimum price of $0.32 per share.

This acquisition aligns with EPX’s strategy to broaden its technology offerings and market verticals, particularly targeting industrial and non-building management system (BMS) sites with Wattwatchers’ proprietary metering hardware and platform.

Capital Raising to Support Growth

To fund the acquisition and support future growth initiatives, EPX has secured commitments for a $2.14 million placement from both existing and new institutional investors. The placement shares are priced at $0.25 each, representing approximately a 20% discount to the company’s 20-day volume-weighted average price (VWAP), reflecting a strategic incentive for investors.

In addition to the placement, EPX is offering a Share Purchase Plan (SPP) to eligible shareholders, aiming to raise up to $700,000 at the same discounted price. This dual approach to capital raising not only funds the acquisition but also strengthens EPX’s balance sheet for further mergers and acquisitions, technology investments, and general working capital needs.

Enhancing Recurring Revenue and Technology Capabilities

Wattwatchers brings to EPX a recurring revenue stream estimated between $2 million and $3 million, primarily uncontracted but with a gross profit margin projected to improve to around 40% in FY26. The business is expected to break even on EBITDA in FY26 and deliver positive run-rate earnings by FY27.

The acquisition includes retention of key staff and all intellectual property, brand assets, and sales contracts, ensuring continuity and integration of Wattwatchers’ real-time energy data and monitoring solutions. This complements EPX’s EDGE platform, which already manages over 700 buildings globally, delivering significant energy and cost efficiencies.

Looking Ahead

EPX’s CEO John Balassis highlighted the strategic fit of Wattwatchers within EPX’s broader vision to be the planet’s most impactful building performance platform provider. The acquisition is expected to accelerate EPX’s ability to meet evolving customer demands for sustainability and building performance insights, particularly in markets requiring granular energy data for programs like NABERS and Green Star.

With the capital raise completed and integration underway, EPX is positioned to pursue further M&A opportunities and continue investing in its technology platform, reinforcing its leadership in the energy monitoring sector.