Virtualware to Acquire Virtalis to Scale European Immersive Tech

Virtualware has signed an agreement to acquire 100% of Virtalis Holding, a Manchester-based specialist in virtual reality (VR) and real-time 3D visualization. The move signals a major consolidation of immersive technology providers serving high-stakes industrial sectors across Europe.

Under the terms of the agreement, Virtualware will make a fixed payment of €5 million upon completion. The deal also includes a variable payment component tied to the operating results of Virtalis for the years 2026 and 2027. The transaction is expected to close in September 2026, pending regulatory clearance from the UK Cabinet Office under the National Security and Investment Act 2021.

Scaling the Immersive Pipeline

The acquisition is a cornerstone of Virtualware's strategy to dominate the European immersive visualization market. This follows the company's October 2024 acquisition of Simumatik, a Swedish firm specializing in digital twins. By combining Simumatik’s emulation capabilities with Virtalis’s high-fidelity visualization and Virtualware's own VIROO XR platform, the company is building a comprehensive end-to-end pipeline for industrial deployment.

Central to the deal is Virtalis's core product, Visionary Render. The software is capable of integrating more than 25 different data types—including CAD, PLM, BIM, point cloud, and IoT data—at a 1:1 scale, allowing for precise digital replicas of complex physical environments.

Market Impact and Projections

This merger creates one of the largest European groups dedicated to immersive visualization and digital twin technology. The combined entity is projected to reach €10 million in revenue and €2.5 million in EBITDA, supported by a workforce of 71 employees.

The acquisition significantly shifts Virtualware's geographic footprint. Following the deal, the United Kingdom is set to become the company's largest single market, representing 37.7% of its aggregate revenue. This expanded scale allows the group to better serve critical sectors, including nuclear energy, defense, and critical infrastructure, where high-precision visualization is essential for safety and operations.

Future Outlook

Both leadership teams have emphasized stability during the transition. Andy Hill, CEO of Virtalis, stated that the merger creates a stronger platform for investment and innovation. Virtualware CEO and founder Unai Extremo has committed to retaining the Virtalis team and maintaining its UK operations to ensure service continuity for existing clients.

Industry observers will now look toward the UK Cabinet Office for the necessary security clearances. Once completed, the focus will shift to how effectively Virtualware can integrate the three distinct technology stacks—Simumatik, Virtalis, and VIROO—into a single unified offering for the enterprise market.