As software company Vection Technologies (ASX: VR1) strives to rule the roost on the digital fashion runway, it is enhancing its IntegratedXR suite of products through acquisitions. The most recent one is the acquisition of 3D fashion tech company, MYR Look Customiser. This follows the acquisition of Invrsion, another 3D tech company working in fashion, consumer goods, real estate and retail, in June 2023.
Through the acquisition of MYR—which boasts clients like Diesel, Calvin Klein, and Tommy Hilfiger—Vection Technologies enhances its range of solutions for the fashion, retail, and consumer goods industries, solidifying its position in the integrated Extended Reality (XR) technology field. IntegratedXR represents Vection’s line of extended reality (XR) businesses.
Managing Director of Vection, Gianmarco Biagi, commented, “This acquisition reinforces our commitment to delivering unparalleled solutions to our customers in the fashion, retail, and consumer goods, sectors. With MYR’s expertise and innovative 3D and mixed reality solutions, we can now provide a stronger suite of solutions that empower our customers to transform their businesses and stay ahead in this rapidly evolving market.”
During MYR’s commercial start-up phase in 2022, it made around $30,000 in revenue. With the current acquisition, MYR will give a performance-based right that can turn into company shares. This will happen based on its revenue milestones for 2025, with the minimum target being about $600,000. The value of the consideration payable is capped at 6,200,000 shares. Another condition is that MYR’s CEO, Umberto Brocchetto, stays employed until June 30, 2025.
MYR’s software, known as the “Look Customizer”, helps fashion labels change their design and manufacturing procedures. This software allows them to produce and personalise virtual denim prototypes with remarkable simplicity and accuracy. Plus, MYR offers consultancy services that aid clients in optimising their product design, prototyping, and industrialisation workflows.
Thanks to this, customers can improve efficiency, accelerate time-to-market, reduce costs, and deliver more personalised and immersive experiences to their target audience. Moreover, MYR receives backing from renowned industry figure Adriano Goldschmied, the innovator behind the international retail apparel brand Diesel.
The acquisition of MYR brings several benefits to Vection Technologies. First, the integration of MYR’s technology into the existing INTEGRATEDXRÒ suite has the potential to enhance client experience in the fashion sector.
Secondly, Vection’s plan to introduce MYR’s technology across its sales network could lead to growth for both Vection and its customers. The acquisition also gives Vection a stronger global commercial presence and a range of tailored INTEGRATEDXRÒ solutions for the fashion, retail, and consumer goods sectors.
Finally, the integration could result in increased efficiency. Through centralising administrative tasks, focusing on sector-specific commercial activities, and consolidating research and development efforts, Vection might lower overhead costs. This could translate to better value for its customers.
In FY23, the fashion, retail and consumer goods market segment made up 35%, i.e. the largest chunk, of its total contract value of $28 million. It spent about $21.8 million on product manufacturing, and garnered over $22 million in customer receipts. Through its latest acquisitions, Vection is trying to further tap into its lucrative segments and bring home the bacon.
The settlement of the acquisition is expected to occur on or before 30 September 2023.
Alinda is a Business Reporter for The Sentiment
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