VivoPower (NASDAQ:VVPR) announced it has entered into an exclusive heads of agreement to acquire a fully operational, >40MW data center facility in Norway, powered by 100% renewable hydropower.
The acquisition is set to significantly enhance VivoPower's portfolio as part of its expansion into sustainable technology infrastructure.
The deal, valued at an implied $40 million, is projected to be highly accretive, with an indicative proforma EBITDA of $10 million, reflecting an attractive valuation multiple of approximately 4x proforma EBITDA.
The facility’s energy cost is notably low, at below $0.035 per kWh, and the site benefits from a long-term, 50-year land lease.
VivoPower intends to fund the acquisition through deferred vendor finance and a convertible preference share tranche, which carries a $6.80 conversion price and a 6% PIK (payment-in-kind) coupon.
The transaction is contingent upon shareholder approval in January 2026, with closing expected later that month.
In addition to the data center's operational capabilities, VivoPower plans to repurpose the site into a Sovereign AI Hub, aimed at training and running large language models (LLMs) for AI inference.