Virtualware Completed Acquisition of Virtalis
The Bilbao-based company has acquired Virtalis to expand its industrial customer base and international footprint.
Updated on Sept. 28, 2026 in Corporate Finance
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Virtualware has finalized the acquisition of 100% of Virtalis Holding. The strategic move aims to strengthen the company's product portfolio and broaden its reach in the international market.
Why it matters
The deal significantly scales the company's operations, integrating the expertise of the Manchester-based firm to increase pro forma revenue to 10 million euros. It positions the organization to better serve industrial clients by leveraging combined technological assets.
The acquisition involves a fixed payment of 5 million euros, with additional variable payments based on future performance. The deal is expected to push pro forma revenue to 10 million euros.
The players
Virtualware
An enterprise headquartered in Bilbao, Spain, that specializes in advanced software and simulation technology.
Virtalis
A Manchester, United Kingdom-based company founded in 2003 that provides virtual reality and simulation solutions.
LKS Corporate Finance
A financial advisory firm that acted as the lead advisor during the acquisition process.
BBVA
A multinational financial services company that participated in the syndicate funding the acquisition.
The details
The transaction was executed using commercial debt supported by a financial syndicate including BBVA, the Instituto Vasco de Finanzas, Cofides, and Elkargi. LKS Corporate Finance served as the lead advisor for the deal, which followed the 2024 acquisition of Simumatik.
Timeline
Virtalis was founded in 2003.
Virtualware was founded in 2004.
Virtualware acquired Simumatik in October 2024.
Shareholders approved the transaction on 21 September 2026.
Virtualware completed the acquisition on 28 September 2026.
Market Landscape
This acquisition follows the pattern set by the 2024 acquisition of Simumatik by Virtualware, continuing a strategy of inorganic growth through targeted industrial tech buyouts. By integrating Virtalis, the group captures 37.7% of its revenue from the UK market and bolsters its competitive position globally.
Clients of both companies may see an expanded suite of simulation tools and improved support as the entities integrate their product portfolios. The merger also signals a shift toward a more centralized service model for the firm's international industrial customer base.
The takeaway
The move demonstrates how medium-sized industrial tech firms use debt-funded acquisitions to quickly scale their international presence. Investors should watch how the combined entity manages the variable payment milestones over the next two fiscal years.
Further reading
Learn more about industry consolidation trends in our Corporate Finance section.
Source note: This article includes information reported by The Manila times.
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