Virtualware buys UK's Virtalis for €5M, doubling its revenue
What's the deal? VirtualwareDealroom has a profile for this one. Try Dealroom →, a Euronext-listed enterprise software company, has agreed to acquire 100% of Virtalis HoldingDealroom has a profile for this one. Try Dealroom →, a Manchester-based virtual reality and RT3D visualization software firm. The transaction is valued at a fixed €5 million upfront plus earnouts tied to Virtalis' 2026 and 2027 results, and is expected to close in September 2026.
Why now? The UK Cabinet Office cleared the deal in May 2026 under the National Security and Investment Act 2021. It still needs shareholder approval at Virtualware's extraordinary general meeting within 30 days.
The numbers: On a pro forma 2026 basis, the combined entity is expected to generate around €10 million in revenue and €2.5 million in EBITDA — roughly double Virtualware's standalone figures. Virtalis, founded in 2003, reported preliminary revenue of €4 million and EBITDA of €1.3 million for its fiscal year ended June 2026. Virtualware closed 2025 with record bookings above €8 million.
What's the endgame? Virtalis' flagship Visionary Render integrates more than 25 data types — including CAD, PLM, BIM, point cloud, and IoT — into 1:1 scale visualization scenes for design reviews, training, and maintenance. It joins Virtualware's portfolio alongside the VIROO XR platform and SimumatikDealroom has a profile for this one. Try Dealroom →, a digital twin specialist acquired in October 2024, with Visionary Render apps to run through VIROO.
The deal reshapes Virtualware's geography. The UK will become its largest single market at 37.7% of combined revenue, and sales from outside Spain will rise from 54% to 78% of the total. The merged group will employ 71 people, up from 52, keeping engineering centres in Bilbao, Manchester, and Skövde, with no site consolidation planned.
The purchase will be funded through commercial debt and internal cash at a 70/30 ratio, with no shareholder dilution.
What they're saying: "For Virtalis's clients and employees, this transaction means continuity," said Virtualware chief executive officer Unai Extremo, pledging to retain the team and strengthen UK operations. Virtalis CEO Andy Hill called it a "stronger platform for continued innovation, investment and growth."
The signal: The combined group positions itself as one of Europe's largest specialized immersive visualization and digital twin providers for industry, defense, and critical infrastructure. Between them, the companies serve clients including BAE SystemsDealroom has a profile for this one. Try Dealroom →, Blue Origin, Lockheed MartinDealroom has a profile for this one. Try Dealroom →, FordDealroom has a profile for this one. Try Dealroom →, VolvoDealroom has a profile for this one. Try Dealroom →, and the Spanish Ministry of Defense — a client base that underlines where enterprise VR is finding paying customers.
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Image credit: Generated with Gemini
