VivoPower Completes Transformational Data Center Acquisition, Achieves Pro Forma EBITDA Profitability with $10M Contribution
Summary
VivoPower PLC has completed its previously announced $41 million acquisition of Cowa's operating subsidiaries, which own and operate a 41.5MW data center in Norway. This transformational deal is fully funded without requiring additional public equity, a key positive for shareholders. The acquisition immediately makes VivoPower EBITDA profitable on a pro forma basis, contributing $31 million in annualized revenue and $10 million in annualized EBITDA, a significant turnaround from the company's pre-acquisition EBITDA loss of $8.2 million. This represents a substantial and immediate improvement in financial performance for a company of VivoPower's size. Investors will now watch for progress on optimizing the data center for AI compute applications and securing new tenants, as well as the approval for an additional 40MW expansion capacity.
At the time of this announcement, VIVO was trading at $3.03 on NASDAQ in the Technology sector, with a market capitalization of approximately $52.2M. The 52-week trading range was $1.20 to $8.88. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.