Internet of Things Inc (CVE:ITT) is set to buy Weather Telematics Inc, a company which offers real-time artificial intelligence (AI) based predictive road condition weather analytics for C$2.53mln.
Weather Telematics uses a proprietary mobile sensor network and a data fusion platform.
It has developed a unique set of meteorological data (based on hundreds of millions of miles of road weather data) that allows it to make real-time hyper-local road condition predictions.
"We are excited to launch a new era of growth for WTX with IoT Inc," said Robert Moran, the chief executive of Weather Telematics.
"Internet of Things Inc's vision closely aligns with our strategy to apply AI-based predictive data and IoT sensor networks to solve some of the global challenges facing the transportation, insurance, and weather sectors."
Michael Frank, chief of IoT Inc added: "Weather Telematics is poised for significant growth with a clear path to increased revenue and profitability.
"Since the signing of our global distribution agreement with WTX this past fall, we have worked alongside their team and have been extremely impressed with their continual progress."
The deal is structured as follows: C$230,000 in cash payable at closing; C$300,000 in cash payable on the six-month anniversary after closing. Also, C$2mln IoT treasury shares priced on a five-day VWAP (volume weighted average price) over the next five days.
The acquisition is expected to close by May 31 this year and the transaction is subject to the approval from both boards and the TSX Venture Exchange.
Last week, IoT said it had appointed James Sutcliffe as president and chief operating officer.
He will oversee operations, investee companies and work with management to expand its strategic plan to acquire and operate growth ready technology companies.
Shares added over 5% to stand at C$0.10.