Universal mCloud Corp (CVE:MCLD) (OTCQB:MCLDF), the artificial intelligence and analytics specialist, released news today that it has signed the final agreement in its previously announced Fulcrum Automation Technologies Ltd and Autopro Automation Consultants Ltd acquisition.
The move is a notable one: it is estimated it will add C$35 million to Universal mCloud's 2019 revenue.
In April 2019, the group told investors it had signed a letter of intent to acquire Autopro, resulting in a three-party transaction to make mCloud a major technology provider in the oil and gas sector. It announced today that the final binding definitive agreement has been fully executed by all parties.
"With the signing of this definitive agreement, we look forward to bringing the talent at Autopro together with the talent at mCloud," said CEO Russ McMeekin. "Autopro's extensive expertise in industrial process automation along with the many strong customer relationships they maintain within oil and gas create the opportunity to take AI-powered asset management across the industry."
The transaction is structured so that Fulcrum will initially acquire 100% of Autopro for cash and shares. Immediately thereafter, mCloud will acquire 100% of Fulcrum. As a result of this transaction, mCloud said it expects to add to its total combined revenues C$35 million in revenue and C$5.5 million in EBITDA (earnings before interest, tax, depreciation and amortization) on a trailing 12-month basis.
Universal mCloud said it has received a term sheet from a senior lender to facilitate the cash payment at closing and expects to close the funding, alongside the transaction. Based on a closing share price of C$0.37 on June 11, 2019 the total transaction value is C$40.2 million.
The firm said it expects to complete the transaction by the end of June.
Universal mCloud offers complete asset management solutions to three distinct segments: smart buildings, wind energy, and oil and gas.
With more than 100 blue-chip customers and over 28,000 assets connected around the globe, mCloud is working to change the way energy assets are managed.
Contact Katie Lewis at [email protected]