VivoPower Just Announced A Deal That Could Return It To Group-Level Profitability
Synopsis
The company signed an agreement to acquire a data center facility in Norway, a move expected to add about $10 million in EBITDA.
- VivoPower said the deal implies an enterprise value of about $40 million.
- The 40MW-plus facility is powered entirely by renewable hydroelectric energy.
- The acquisition is expected to close in January 2026.
VivoPower International PLC (VVPR) stock rose 3% on Tuesday after the company signed an agreement to acquire a data center facility in Norway, a move expected to add about $10 million in earnings before interest, tax, depreciation, and amortization (EBITDA).
The acquisition will be funded through deferred vendor finance and a tranche of convertible preference shares, with closing expected in January 2026.
VivoPower Deal Contours
The company said the deal implies an enterprise value of about $40 million, roughly four times pro forma EBITDA, and is expected to be highly accretive, bringing VivoPower back to group-level profitability upon closing. The company has reported net losses over the past three fiscal years.
The 40MW-plus facility is powered entirely by renewable hydroelectric energy, with access to low-cost electricity priced below $0.035 per kilowatt-hour. It currently offers more than 40MW of energized capacity, with an additional 40MW targeted for potential approval in 2026.
VivoPower plans to use the site as the foundation of its Power-to-X strategy under its Caret Digital platform, with the longer-term goal of repurposing the asset from blockchain compute hosting into a Sovereign AI Hub supporting carbon-neutral AI workloads.
The company recently announced the submission of Form F-4 to the SEC for the planned business combination between its subsidiary, Tembo e-LV, and Cactus Acquisition Corp, a special purpose acquisition company. The transaction is anticipated to close in March 2026.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits turned ‘bullish’ from ‘bearish’ a day earlier, amid ‘high’ message volumes.
Year-to-date, the stock has surged more than 97%.
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