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The innovation division of Reece Group (ASX: REH) has acquired Melbourne-based venture studio Shadowboxer and its webdesign agency Southpaw, giving the listed plumbing products giant capacity to accelerate the digital innovation that is shaping the future of the trade and construction industry.
As part of the deal, Shadowboxer and Southpaw’s senior teams will join Reece Group’s Breakthrough Innovation Group (BIG) through which the acquisition was made.
The businesses will work alongside BIG’s venture capital arm Superseed Ventures, creative agency Trout and innovation consultancy Next as part of a broader mission to lead the trades sector into the digital world.
“Technology and innovation are key pillars driving Reece’s 2030 vision and the future of our industry,” says Reece Group’s innovation director Jeremy Crow.
“We’re excited to welcome Shadowboxer and Southpaw to the group. Their teams will give BIG the skills to build world-class digital products, while accelerating Reece’s strategy to be the trade’s most valuable partner.
“Shadowboxer and Southpaw, with their proven digital product and web building capabilities, will bolster our ability to execute on our strategy and drive change, taking ideas from prototypes into fully launched digital products. They are the perfect fit to work alongside Next and Trout.”
Financial details of the acquisition have not been disclosed, but the deal will see Shadowboxer co-founder and managing partner Konrad Spilva join the Reece team as chief digital officer for Australia and New Zealand.
Fellow co-founder Stephen Graham will become general manager of Shadowboxer working alongside existing partners Mike Fraser, Steven McGrath, Emma Park and Rachel Legge.
Southpaw will continue to be led by Ant Mangos as general manager and Dave Sharpe as head of technology.
Shadowboxer was founded by Spilva, Graham, McGrath, Fraser and Tom Ashmor in 2020 and since then it has built more than 55 digital products, helping its partners with successful raises and exits totalling about $100 million. This includes the exit of hospitality tech product Doshii to Commonwealth Bank of Australia (ASX: CBA) in 2021.
Under BIG’s ownership, Shadowboxer will continue to build and launch products with early-stage startups across all industries, including trades and construction.
Among the current investments by Shadowboxer is an equity stake in artificial intelligence assistant Goldee which was launched last year by Fraser and LVLY co-founder Verity Tuck. LVLY was a venture co-founded by Tuck and Spilva's wife Hannah and exited by the pair for $35 million in 2022.
Southpaw will play a key role in delivering Reece Group’s digital strategy through scalable and flexible web solutions for clients in Australia and the US.
“In four years, we have been fortunate to build a world-class product team and worked with many incredible startups and corporate ventures,” says Spilva.
“This acquisition is both strategic and heartfelt, honouring the legacy of our late co-founder, friend and technology partner Tom Ashmor who tragically passed away earlier in the year.”
Graham says he is looking forward to “doubling-down and building a long-term strategy with Reece’s global business advancing innovation in construction and trade”.
“We’ll continue to do what we set out to do, which is work with founders and innovators to build great digital products,” he says.
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