Acquisition would bring BuildingIQ's 5i technology to AssetCare™ for smart building customers globally along with C$6.1 million in trailing twelve month revenues, a strong customer presence in Australia, and enable the expansion of smart building business in Southeast Asia.
VANCOUVER, Feb. 10, 2020 /CNW/ - mCloud Technologies Corp. (TSX-V: MCLD, MCLD.DB) (OTCQB: MCLDF) ("mCloud" or the "Company"), a leading provider of asset management solutions combining IoT, cloud computing, artificial intelligence ("AI"), and analytics, today announced it has signed an Expression of Interest ("EOI") to acquire BuildingIQ (ASX: BIQ), a cloud-based building technology provider, founded in Australia with offices in the United States, using IoT and AI to create energy savings and maximize building efficiency.
"BuildingIQ is a highly complementary business to our own AssetCare segment for smart buildings," said Russ McMeekin, mCloud President and CEO. "Through BuildingIQ's 5i technology stack, we would be able to integrate new AI and IoT solutions into AssetCare, which would let us combine our respective energy savings technologies to target new large commercial spaces such as hospitals and bring new energy management tactics to enterprise multi-site building portfolios via capabilities such as automated measurement and verification (M&V)."
"With BuildingIQ's home base in Australia, their operations would also provide us with an anchor to expand our business development activities for smart buildings to Southeast Asia, an excellent addition to our existing strategy to secure major oil and gas customers in the region," McMeekin added. "At close, we would expect to bring cost synergies to BuildingIQ that would make the transaction cash accretive without impacting BuildingIQ's growth trajectory and ability to continue serving customers."
BuildingIQ currently connects more than 1,350 commercial buildings worldwide with over 140 million square feet under management. Since its IPO in December 2015, BuildingIQ has achieved a 20% compound annual growth rate (CAGR) and renewal rates of 97% among its customers.
mCloud intends to provide BuildingIQ with a working capital facility and an offer to acquire 389 million CHESS Depositary Interests ("CDIs") in BuildingIQ in exchange for 882,230 common shares of mCloud. The working capital facility would be used to support BuildingIQ's growth momentum in 2020.
The terms of the proposed transaction are as follows:
- The non-binding EOI is subject to a period of due diligence and exclusivity, and contingent on the execution of definitive agreements between BuildingIQ and mCloud.
- The EOI provides that mCloud will offer to buy each BuildingIQ CDI holder's CDIs on the basis that CDI holders will receive 1 share of mCloud for every approximately 441 CDIs held.
- This equates to a price of A$0.0158 per CDI, which represents a 58% premium to BuildingIQ's last closing price on the ASX and mCloud's three-day VWAP stock price for the week of February 2, 2020 of C$6.27.
- mCloud will provide BuildingIQ with a secured working capital loan of A$1.5 million on commercial terms on February 14, 2020, the use of which by BuildingIQ will be managed jointly by mCloud and BuildingIQ.
- Both companies have agreed to a break fee of A$500,000 on terms consistent with transactions of this nature.
Provided that all conditions to closing are satisfied, including receipt of all required regulatory and shareholder approvals (including, if applicable, the approval of the TSX Venture Exchange), the proposed transaction is expected to close on June 19, 2020.
About mCloud Technologies Corp.
mCloud is creating a more efficient future with the use of AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Through mCloud's AI-powered AssetCare™ platform, mCloud offers complete asset management solutions to three distinct segments: smart facilities, power generation, and process industries including oil and gas. IoT sensors bring data from connected assets into the cloud, where AI and analytics are applied to maximize their performance.
Headquartered in Vancouver, Canada with offices in twelve locations worldwide, the mCloud family includes an ecosystem of operating subsidiaries that deliver high-performance IoT, AI, 3D, and mobile capabilities to customers, all integrated into AssetCare. With over 100 blue-chip customers and more than 35,000 assets connected in thousands of locations worldwide, mCloud is changing the way energy assets are managed.
mCloud's common shares trade on the TSX Venture Exchange under the symbol MCLD and on the OTCQB under the symbol MCLDF. mCloud's convertible debentures trade on the TSX Venture Exchange under the symbol MCLD.DB. For more information, visit www.mcloudcorp.com.
BuildingIQ (ASX: BIQ) helps building owners and operators worldwide lower energy use, increase building operations efficiency and enhance tenant comfort. The Company's 5i cloud-based platform and Managed Services deliver on the promise of Internet of Things (IoT) for buildings. Over 140M square feet of building space is currently under management with BuildingIQ. www.buildingiq.com
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SOURCE mCloud Technologies Corp.
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mCloud Technologies Corp.