What happens when a successful WA trade sale becomes part of something much bigger? For Subcon International, the answer is a remarkable example of how strategic positioning, founder conviction and the right acquirer can create returns well beyond the initial exit.

Perth-founded subsea engineering company Subcon International has become the latest case study featured in The Full Return - a project exploring the financial and broader impact of investing in Western Australian innovation.

Founded in 2011 by Matthew Allen, Subcon developed specialised intellectual property in seabed stabilisation, marine grouting and engineered artificial reefs - technologies designed to protect offshore infrastructure while also supporting marine habitat.

Its expertise was particularly well positioned for the growing offshore energy and offshore wind sectors, making the company an attractive strategic acquisition target.

In June 2022, ASX-listed MMA Offshore acquired Subcon for A$8.4 million, with the consideration split between A$4.2 million in cash and A$4.2 million in MMA shares.

For Subcon’s founders, accepting shares in the acquiring company meant remaining exposed to the future growth of the broader marine platform rather than simply taking a cash exit.

That decision proved significant.

Just two years later, in July 2024, Cyan Renewables acquired 100% of MMA Offshore for A$1.1 billion, at a 36% premium to MMA’s share price. The Subcon founders who retained MMA scrip were subsequently cashed out at that premium.

The result is a compelling example of compounding value through strategic M&A: a A$8.4 million WA trade sale ultimately fed into a A$1.1 billion international transaction.

More than an exit — a lesson in ROI

Subcon’s story demonstrates that return on investment isn’t always about the headline valuation at the point of exit.

For founders and investors, the strategic question is also what happens next.

By aligning Subcon’s niche technology with a larger marine platform and retaining an equity interest in the acquirer, the founders remained connected to the value created through the subsequent transaction.

It is a powerful reminder that the pathway to liquidity for WA innovation doesn’t have to be limited to traditional venture capital. Trade sales, strategic acquisitions and well-structured consideration can all play an important role in creating returns.

And for investors, it highlights the importance of looking beyond the immediate transaction to understand the potential of the acquiring platform, the market it is entering and the structural trends supporting its growth.

Watch the 90-second story

The 90-second The Full Return video captures Subcon’s journey - from a niche Perth marine engineering company to an A$8.4 million strategic acquisition and, ultimately, its connection to a billion-dollar international transaction.

Watch the clip to hear the story and discover what WA founders and investors can learn from Subcon’s extraordinary return.

WA innovation. Investing with impact. Discover The Full Return.

About The Full Return

The Full Return showcases Western Australian innovation stories through the lens of financial and non-financial return on investment, demonstrating the value that can be created when capital backs ambitious businesses solving real-world challenges.

The Subcon case study was project managed by the Hub of Sustainability (HOSx), with Nexus Point Pictures responsible for video production and For Blue undertaking the research underpinning the story.

The project is funded by Meshpoints, supporting the development and promotion of compelling WA innovation stories and helping demonstrate the opportunities available to investors looking beyond traditional investment pathways.

Project credits:
Project Management: Hub of Sustainability (HOSx)
Research: For Blue
Video Production: Nexus Point Pictures
Funding: Meshpoints