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Highlights
Babylon Pump & Power signs binding agreement to acquire Matrix Hydro Services
Acquisition strengthens water management capability for WA's mining sector
Entitlement offer to support acquisition with key shareholders backing
Babylon Pump & Power (ASX:BPP), a company listed on the ASX 200 index and operating within the specialist resources services sector, has entered a binding agreement to acquire Matrix Hydro Services, a privately held provider of groundwater and aquifer testing solutions in Western Australia. The move aligns with Babylon’s strategy to deepen its expertise in water management and deliver integrated services to mining clients across the region.
Terms of Acquisition and Financial Structure
The acquisition will involve an upfront consideration based on an earnings multiple related to Matrix Hydro’s forecast for the financial year. An additional deferred amount is to be paid contingent on meeting these projections. The entire transaction is structured around a measured valuation model using earnings-based metrics.
To finance the acquisition, Babylon will initiate an accelerated non-renounceable entitlement offer. This offer is being managed by Cumulus Wealth as the lead and Leeuwin Wealth as co-manager. Support for the offer has been confirmed by the company’s primary shareholder group, which has committed to accelerating a portion of its entitlements under the offer.
Strategic Expansion into Water Management Solutions
Matrix Hydro Services brings a distinct niche capability in aquifer testing and groundwater management, making it a strategic fit for Babylon’s expansion goals. These services are critical for Western Australia's resource-rich regions, where water extraction and environmental stewardship are tightly regulated and operationally significant.
With Matrix joining the group, Babylon is set to enhance its platform of rental and maintenance services by integrating high-specialization diagnostics in water systems. This positions the company to provide complete turnkey water management offerings to large-scale mining operators.
Leadership Integration and Expertise Synergy
As part of the acquisition, Matrix founders Blair McDiarmid and Michael Townley will transition into key roles within Babylon’s management team. Both individuals bring extensive experience in hydrogeology and field operations. Their leadership is expected to support Babylon’s intent to deliver technically robust and insight-driven solutions across the water services spectrum.
The integration of Matrix’s team is a strategic move to strengthen the operational backbone of Babylon and support its client servicing ambitions within the competitive landscape of Western Australia's mining infrastructure.
CEO Remarks and Strategic Vision
Babylon’s Chief Executive Officer, Michael Shelby, emphasized the value that Matrix’s inclusion brings to the company. He described the acquisition as a disciplined step forward in delivering high-integrity solutions for water management. The combined capabilities are expected to improve Babylon’s delivery efficiency and service outcomes across projects requiring precision water diagnostics and infrastructure support.
This acquisition underscores Babylon Pump & Power’s continued evolution within the ASX 200 landscape, reinforcing its position among resource service providers focused on scalable, integrated, and technically advanced offerings.
