Nexvia, a Brisbane-based SaaS platform for construction-focused businesses, is being acquired by cloud-based procurement platform Felix Group Holdings (ASX: FLX) in a cash and share deal worth $12 million.
The deal brings to the fellow Brisbane company a business that delivers annual recurring revenue of $3.3 million, reflecting organic growth at a 25 per cent compound annual rate since FY22. This would have given Felix pro forma annual recurring revenue in FY25 of $11.9 million.
Felix, which sees Nexvia as “highly complementary” to its enterprise procurement platform, plans to fund the acquisition through a $17 million capital raising which has been backed by global investment manager Briarwood Chase Management.
The binding conditional agreement to acquire Nexvia comprises $6 million in cash, $3.6 million in Felix shares and $2.4 million in performance rights linked to FY26 subscription revenue growth targets.
Felix co-founder and CEO Mike Davis says the acquisition will accelerate the company’s vendor monetisation strategy.
“Nexvia brings a proven, highly complementary platform and capability set to Felix, delivering a turn-key solution to activate and scale monetisation,” says Davis.
“With a large and growing vendor base already in place, we are now well positioned to unlock the value of the ecosystem we have built.”
Felix is a cloud-based procurement platform that assists asset owners, builders and managers to find, manage and engage third-party vendors.
Davis says the capital raising accompanying the acquisition, which comprises a fully underwritten $16 million placement and a $1 million share purchase plan, has been supported by institutional shareholders and new investors.
“This capital raising has further strengthened our share register through the addition of a number of high quality domestic and international funds who we believe are highly aligned with our long-term value creation strategy,” he says.
Briarwood Chase Management and its private investment fund, Briarwood Capital Partners, is expected to have a 16.1 per cent pro forma shareholding in Felix following the capital raising.
The capital raising is priced at 22c per share, which is equivalent to yesterday’s closing price.
Nexvia, which was founded in 2016 by Robert Rowe and Cameron Blacker, is a subscription-based SaaS (software as a service) platform purpose-built for project-led SMEs, including subcontractors, fit-out specialists and builders.
The platform digitises manual workflows and unifies project and business management in one system, offering centralised tools for project budgeting, scheduling, compliance management, dashboards, live reporting and document management.
The Nexvia platform, which hosts 172 customers and achieved EBITDA break-even in FY25, delivers operational efficiency and enhanced visibility for SME businesses in the construction sector.
As part of the deal, Rowe, the Nexvia CEO, will remain with the company over the next 12 months via a consulting agreement with Felix.
Felix says the acquisition of Nexvia will accelerate its vendor monetisation strategy by equipping vendor SMEs with a fully integrated suite of project and business management tools.
The acquisition will also unlock additional addressable segments of vendors which Felix’s Vendor Marketplace previously did not capture, such as fit-out specialists and SME builders.
“By adding Nexvia’s capabilities into Felix’s platform offering, the acquisition significantly expands product breadth and unlocks strong interoperability between enterprise procurement workflows and vendor project delivery,” says Felix.
“The planned deep integration between the existing enterprise solution and Nexvia will strengthen network effects, enhance data insights and deliver an end-to-end procurement management solution for enterprises and SMEs.”
Felix also expects to cross-sell Nexvia’s services across its own vendor base of more than 110,000.
“This will help drive a new high-margin, recurring revenue stream while also deepening vendor engagement and loyalty, positioning Felix as the go-to digital platform for contracting and asset-owner enterprises, and now their supply chains,” says the company.
Felix today announced an unaudited $4.73 million net loss for FY25, a 7 per cent improvement on a year earlier, while adjusted EBITDA improved by 32 per cent to a $2.92 million loss. Revenue was up 22 per cent to $8.32 million.
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