Babylon Pump & Power Ltd has announced its acquisition of Matrix Hydro Services, a Western Australia-based specialist in aquifer testing and groundwater management. The deal is a strategic step in Babylon’s long-term ambition to offer fully integrated, high-margin water services to Tier 1 mining clients across the state.
Matrix, founded in 2021 by hydrogeology veterans Blair McDiarmid and Michael Townley, has rapidly built a reputation for precision groundwater diagnostics and mine-spec equipment deployment. Its expertise has become a critical part of dewatering strategies and compliance programs for several major mining operations.
This acquisition marks the final piece in Babylon’s integration of the Resource Water Group (RWG), acquired in 2022. With Matrix’s co-founders now joining the Babylon executive team, the company gains not only technical depth but continuity in trusted client relationships developed over decades.
Delivering full-service dewatering and diagnostics
Babylon is already well established in the resources sector as a provider of high-pressure pumping, dewatering, and project water management services. The addition of Matrix allows Babylon to consolidate ownership of a key competitor while expanding its capacity to deliver bundled diagnostic and rental solutions tailored to site-specific needs.
According to Babylon CEO Michael Shelby, the move enhances Babylon’s ability to offer insight-driven water solutions with a high level of operational integrity. “Bringing Matrix on board significantly expands our technical bench strength,” Shelby said. “It enables us to deliver more value to our clients by integrating critical groundwater diagnostics with our existing rental and maintenance platforms.”
Matrix’s field teams are known for their ability to collect, analyse, and apply complex hydrogeological data to inform remediation plans and long-term water strategies. This capability directly complements Babylon’s service model, creating a pipeline of opportunity for equipment deployment aligned with rigorous data-led planning.
A disciplined and strategic investment
The $2.5 million upfront acquisition cost, with a potential $1.1 million deferred based on FY26 performance, represents a conservative 3.27x EBITDA multiple. Babylon’s fiscal discipline continues to be a hallmark of its acquisition strategy, ensuring each deal delivers measurable value to shareholders.
To fund the acquisition, Babylon has launched a $3.5 million Accelerated Non-Renounceable Entitlement Offer (ANREO), supported by key shareholders including Belgravia Strategic Equities and Resource Water Group. The funds will cover the cash component of the Matrix transaction and provide additional working capital.
Importantly, Babylon sees this acquisition not as an endpoint but as a milestone in a broader inorganic growth strategy. The company intends to continue its expansion via targeted acquisitions, with a focus on water services that align with its technical strengths and operational priorities.
Strengthening service to Tier 1 miners
As dewatering becomes increasingly critical in Australia’s mining landscape, Babylon’s expanded capabilities come at a pivotal time. Groundwater management is under heightened scrutiny due to environmental, operational, and compliance pressures, making expert diagnostics and reliable pumping infrastructure more essential than ever.
Babylon is positioning itself as a one-stop provider for water management in mining—from precision diagnostics through to pump deployment, maintenance, and data-informed optimisation.
The company’s growing footprint in Western Australia, combined with its enhanced leadership team and strong client portfolio, sets the stage for future growth. With Matrix now part of the group, Babylon has significantly strengthened its ability to deliver high-performance dewatering outcomes in even the most complex geological environments.
