Key Takeaways:
(Bloomberg) -- VivoPower PLC (NASDAQ: VIVO) completed its $41 million acquisition of a Norwegian data center, a transformational deal that adds an estimated $31 million in annual revenue and shifts the company to immediate EBITDA profitability.
“We are pleased to have completed this transformational transaction, securing a strategic and income-producing data center asset at a disciplined 4x EBITDA multiple,” Kevin Chin, Executive Chairman and CEO of VivoPower, said. “Our focus has already shifted from deal execution to asset optimization.”
The acquisition provides VivoPower with an operational 41.5MW data center in Moi i Rana, Norway, powered entirely by hydroelectric energy at a cost below $0.035 per kilowatt-hour. The deal is expected to contribute approximately $10 million in annual pro forma EBITDA, a sharp turnaround from VivoPower’s pre-acquisition adjusted EBITDA loss of $8.2 million for the fiscal year ended June 30, 2025. The transaction was fully funded without requiring additional public equity.
The deal repositions VivoPower as a profitable operator of sustainable energy infrastructure for the high-growth AI and data center market. The company is already in discussions with potential tenants for AI computing use cases, leveraging the site's low-cost renewable power. An additional 40MW of expansion capacity is subject to regulatory approval, providing a path to more than double the site's capacity to over 80MW.
The acquisition marks a significant strategic pivot for VivoPower, which is now focused on developing and owning powered land and data center infrastructure for AI compute applications. The Norway facility's high-density power availability and cold-climate location make it efficient for repurposing into higher-value AI-related workloads.
“This partnership reflects a shared belief in the long-term convergence of energy and computing,” said Fiorenzo Manganiello, a Board Director of Cowa, the seller.
VivoPower also noted that the potential spin-off of its Tembo unit, which is subject to a separate business combination agreement, could further improve its financial profile. Tembo accounted for approximately $8 million in direct and indirect costs in fiscal 2025, which would be removed from VivoPower’s results upon completion of the transaction.
This article is for informational purposes only and does not constitute investment advice.
