Virtualware Acquires Virtalis Doubling Scale and Expanding International Footprint

Virtualware, a European leader in 3D-driven industrial software, has completed the acquisition of Virtalis Holding, a Manchester-based virtual reality and real-time 3D visualization software company. The deal, finalized on 28 September 2026, marks a significant milestone for Virtualware, as it more than doubles the company’s scale, with pro forma revenue increasing from €4.32 million to €10 million based on projected 2026 results.

Founded in 2003, Virtalis specializes in virtual reality and real-time 3D visualization software and has a client list that includes BAE Systems, Blue Origin, Lam Research, Seaspan, Subsea 7, Vestas, Thales, Lockheed Martin, and Ford. This acquisition further strengthens Virtualware’s international footprint, with revenue generated outside Spain rising from 54% to 78%. The United Kingdom now becomes the largest market, accounting for 37.7% of the proforma combined group's aggregate revenue.

The acquisition follows Virtualware’s track record of inorganic growth. In October 2024, the company acquired Simumatik, a Swedish specialist in emulation and digital twin technology. The transaction was approved at the Extraordinary General Meeting held in Basauri on 21 September 2026. The deal combines a fixed payment of 5 million euros on completion with a variable component linked to Virtalis's operating results in 2026 and 2027, funded through commercial debt.

LKS Corporate Finance served as the Lead Financial Advisor to Virtualware on this acquisition, providing comprehensive financial advisory services, including valuation, transaction structuring, negotiations, and deal execution. Geldars LLP acted as the legal advisor.

The acquisition was structured through a financial syndicate backed by Banco Bilbao Vizcaya Argentaria (BBVA), the Instituto Vasco de Finanzas (IVF, the Basque Government's public financial entity), Cofides, and Elkargi. Virtualware, headquartered in Bilbao, Spain, with subsidiaries in the United Kingdom, Canada, the United States, and Sweden, continues to expand its presence in the global market.

Founded in 2004, Virtualware is one of the leading companies in enterprise software based on immersive and real-time 3D technologies for industrial and educational environments. The company’s international expansion is a key focus, with the acquisition of Virtalis significantly bolstering its position in the UK and other key markets.