Virtualware Acquired Virtalis for €5 Million
The purchase expands the company's international footprint and adds a key industrial customer base.
Updated on Sept. 28, 2026 in Corporate Finance
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Virtualware has acquired 100% of Manchester-based Virtalis, marking another expansion in its industrial software strategy. The deal, completed following shareholder approval, aims to increase the company's pro forma revenue to €10 million.
Why it matters
The acquisition scales Virtualware's industrial software presence while significantly diversifying its geographic revenue concentration. By entering the UK market, the company is pivoting to reduce its reliance on its Spanish home market.
The transaction includes a €5 million fixed payment plus a variable component based on 2026 and 2027 performance. Following the acquisition, 78% of the group's revenue is now generated outside of Spain.
The players
Virtualware
A software company headquartered in Bilbao, Spain, focused on industrial technology.
Virtalis
A UK-based company specializing in industrial virtual reality solutions founded in 2003.
BBVA
A multinational financial services firm that participated in the debt syndicate.
LKS Corporate Finance
A specialized financial advisory firm that served as the lead advisor for the acquisition.
The details
Virtualware financed the acquisition through a commercial debt syndicate involving BBVA, the Instituto Vasco de Finanzas, Cofides, and Elkargi. The integration of Virtalis, founded in 2003, follows Virtualware's October 2024 acquisition of Simumatik. LKS Corporate Finance acted as the lead financial advisor for the transaction.
Timeline
2003: Virtalis was founded.
2004: Virtualware was founded.
October 2024: Virtualware acquired Simumatik.
21 September 2026: Shareholders approved the acquisition.
28 September 2026: The acquisition was completed.
Market Landscape
This deal continues an aggressive M&A strategy for Virtualware that mirrors its 2024 acquisition of Simumatik. The move shifts the firm away from its legacy reliance on the Spanish market toward a more diversified international industrial portfolio.
Operators should monitor how the integration of the UK market affects the firm's combined service delivery and industrial pricing models. Management must prepare for the future integration of variable payment performance targets into the 2027 fiscal planning cycle.
The takeaway
The move signals that Virtualware is prioritizing rapid international scale through debt-funded acquisitions. Operators should track how the combined group handles cross-border operational overhead as it shifts its revenue base significantly toward the UK.
Further reading
For more on industry consolidation, see the latest in Corporate Finance.
Source note: This article includes information reported by The Manila times.
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