RBH provides rental pumps and specialist mechanical services in the water management field for mining operations.

Consideration comprises $1.8 million cash on completion, expected at the end of this month, as well as deferred consideration of $1.2 million in 12 equal monthly instalments over 12 months.

The RBH assets have been independently valued at over $2.6 million. They have high utilisation rates and will provide immediate earnings contribution to BPP through existing rental contracts with clients.

"Management of groundwater and water ingress issues remain a ‘mission critical' requirement for the mining and resource sector and the acquisition of RBH is a further strategic step into this attractive sector," Babylon managing director Michael Shelby said.

"This is an exciting and well-priced acquisition for Babylon which will expand our rental fleet, client base and water management activities.

"The acquisition complements our current operations with minimal increase in overheads while continuing to advance our rental and water management strategy."

Babylon's last reported cash position was $2.2 million.

The company reported revenue of $27.5 million in FY22.

The company's shares last traded at 0.4c, giving it a market capitalisation of $9.8 million.