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Startup accelerator and investor Scalare Partners (ASX: SCP) continues to go full steam ahead since its backdoor listing late last year, snapping up its second business in the space of four months as it builds on a suite of brands including Tech Ready Women and the Australian Technologies Competition.
Following the $1.7 million acquisition of online fundraising marketplace Inhouse Ventures (IHV) in March, Scalare announced today it had entered an agreement to buy 100 per cent of flexible office provider Tank Stream Labs (TSL) for $5.5 million.
Led by CEO Bradley Delamare, Tank Stream provides both co-working spaces and business services tailored for Australia's technology sector, with more than 200 companies working across its seven locations, five of which are in Sydney with further offices in Melbourne and Adelaide.
Scalare plans to fully integrate Tank Stream into its ecosystem, enhancing its ability to deliver comprehensive support, services, accelerators, investment, and infrastructure for tech entrepreneurs.
The deal comprises $3 million upfront in cash, payable on completion and subject to a capital raising, $1.5 million worth of Scalare shares if approved by shareholders, and a $1 million deferred consideration if a net profit before tax (NPBT) of $1.14 million is achieved for FY26.
Tank Stream's NPBT was $611,000 in FY25, down 15 per cent due to heavy investments in its team infrastructure and office fittings, while unaudited revenue was up by almost a quarter at $12.1 million as it grew from three to seven locations over the financial year.
"Joining forces with Scalare Partners and their other businesses, such as Inhouse Ventures, Tech Ready Women and the Australian Technologies Competition is a natural evolution for Tank Stream," says Tank Stream Labs CEO and founder Bradley Delamare, who will remain in the role.
"Our flexible workspaces and existing community will play a key role in expanding the Scalare business and entrench Tank Stream as the leading technology support business in Australia. I’m thrilled to continue leading TSL and look forward to what we can achieve together."
The Scalare management believes the acquisition will advance its strategic vision to enhance investment decisions in early-stage technology companies by embedding itself more deeply within the startup ecosystem, leveraging Tank Streams’ extensive member network and active client base.
"This acquisition marks an exciting milestone for Scalare. TSL has established itself as a vital partner to tech founders, providing essential support as they scale their businesses," says Scalare CEO Carolyn Breeze.
"This aligns with our mission to empower technology entrepreneurs at every stage of their journey. We are eager to collaborate with Brad and the TSL team to deliver even greater value and impact within the technology ecosystem."
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