Technology advisory and investment business Scalare Partners (ASX: SCP) is to acquire technology co-working centres operator Tank Stream Labs for $5.5 million, subject to a private placement capital placement seeking $3 million to $5 million.
Tank Stream Labs will be Scalare Partners’ fourth acquisition since April 2023. Previous acquisitions include Tech Ready Women, the Australian Technologies Competition and business development advisory business Inhouse Ventures, which was acquired for up to $1.733 million early this year.
Scalare listed on the ASX via a reverse takeover in late 2024 after raising $4.3 million in an IPO in which shares were issued at 25 cents each. The shares last traded at 17 cents.
Announcing the transactions on 14 July, Scalare said the acquisition of Tank Stream Labs would provide it with seven co-working locations in Sydney, Melbourne and Adelaide. Under chief executive Bradley Delamere, who would continue to lead the business, Tank Stream Labs had developed deep community ties and a record of supporting leading technology founders.
Scalare Partners chief executive Carolyn Breeze added: “Tank Stream Labs has built a great reputation as an incredible assistance to tech founders as they grow their businesses. This aligns perfectly with our mission of supporting technology founders at every stage of their journey.”
Scalare, which launched in 2020, said it generated $1.3 million in product and services revenue over the first half of 2024.
The company also makes investments off its own balance sheet in early-stage technology businesses. Companies in which it is invested include regtech business Frankie1 and UK business-to-business fitness app company WithU. The company valued its investment portfolio across 30 businesses at around $10.7 million as at December 2024.
Tank Stream Labs generated revenue of $9.7 million in the 2024 financial year and is forecasting revenue of $12.1 million for the 2025 financial year. The company’s unaudited financials record gross profit of around $2.2 million and EBITDA of around $570,000 on revenue of around $11.1 million for the 11 months to 31 May 2025.
Image: Tank Stream Labs offers flexible workspaces.