Tank Stream Labs sells to ASX-listed Scalare Partners in $5.5 million deal

ASX-listed technology firm Scalare Partners will acquire coworking space Tank Stream Labs in a deal worth up to $5.5 million.

The move comes as 12-year-old Tank Stream Labs prepares to move out of the Sydney Startup Hub, which is being shut down by the NSW government.

Tank Stream Labs CEO Bradley Bradley Delamare will remain at the helm, having overseen the national expansion of the brand to seven locations, including Adelaide this month, as well as Melbourne and five sites in Sydney: Martin Place, Barangaroo, Australia Square and Campbell Street, near Chinatown. All up, more than 200 companies are based at Tank Stream.

In a statement to the ASX after calling a trading halt on Monday morning, Scalare Partners (ASX: SCP) said the $5.5 million acquisition price includes escrowed ordinary shares in Scalare Partners, an upfront cash payment and deferred consideration for meeting FY26 profit milestones.

The breakdown is $3 million in cash – payable on completion and subject to capital raising by Scalare, plus $1.5 million ordinary shares in Scalare – issued on completion and subject to shareholder approval and escrowed to 14 November 2026; as well as $1 million in total deferred consideration, with 50% cash and 50% Scalare shares. The additional payment expected to be funded from the cash surplus generated by the TSL business.

The company will look to raise between $3m and $5m to cover the cost of the acquisition.

Scalare plans to hold a shareholder meeting in late August to approve the deal and its capital raise.

Tank Stream Labs is expected to generate around $15m revenue and be EBITDA and cashflow positive in FY26.

Revenue has grown from $9.7 million in FY2024 to an estimated result (unaudited) for FY2025 of $12.1 million. The net profit before tax for the year ended 30 June 2025 is expected to be around $611,000, down from $721,000 in FY24.

Scalare CEO Carolyn Breeze said the acquisition is “an exciting milestone” for the business, which listed on the ASX last year.

“TSL has established itself as a vital partner to tech founders, providing essential support as they scale their businesses. This aligns with our mission to empower technology entrepreneurs at every stage of their journey,” she said.

“We are eager to collaborate with Brad and the TSL team to deliver even greater value and impact within the technology ecosystem.”

It’s the fourth acquisition by accelerator and investor Scalare, which nabbed VC marketplace Inhouse Ventures for $1.73 million earlier this year, as well as Tech Ready Women and the Australian Technologies Competition.

Breeze said Tank Stream will be fully integrated into the Scalare ecosystem.

Tank Stream CEO and founder Bradley Delamare said joining forces with Scalare Partners “is a natural evolution” for the business.

“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,” he said.

Scalare said it expects to unlock new revenue streams through the delivery of fractional executive services, digital advisory solutions, targeted startup events, and accelerator programs.

The business went public in November 2024 in a reverse takeover of confectionary maker Candy Club. It raised $4.3 million, raised just over half its $8m target at $0.25 cents a share. Since listing, the share price as fallen, and sat at $0.17 cents when a trading halt was called