It’s official, Universal mCloud Corp. (TSXV:MCLD) (OTCQB:MCLDF) has acquired Fulcrum Automation Technologies and Autopro Automation Consultants and solidified its spot in the oil and gas market.
mCloud, an asset management solutions provider that uses AI and analytics to reduce energy waste and maximize energy production, will now be able to further expand its reach and offer AI-powered products for oil and gas applications.
According to the company’s president and CEO, Russ McMeekin, Autopro’s expertise and industrial reach along with mCloud’s portfolio of AI, IoT, 3D, and mobile capabilities will allow them to connect oil and gas field assets at every stage of production and refinement. The addition of Autopro’s team will accelerate the company’s development in this industry and provide mCloud with a strong customer base.
Acquisition Expected to Significantly Boost Revenue
Not only will the acquisition of Autopro position Universal mCloud well as a major technology provider in the oil and gas sector, but it will also significantly boost the company’s revenue. In fact, mCloud expects it to add roughly $35 million CAD in revenue and $5.5 million CAD in EBITDA on a trailing 12-month basis.
The company is already seeing revenue growth this year, bringing in $2.2 million in Q1 2019, which represents a 500% increase compared to Q1 2018. Of course, an extra $35 million is more than welcome.
Up until this point, the majority of its revenue was coming from its other segments: smart buildings and wind energy. The company has inked several deals to provide smart building and smart energy capabilities to assets around the world. It currently boasts over 100 blue ship customers and has more than 28,000 assets connected in thousands of locations across the globe.
Connecting Oil & Gas Workers with Real-Time Access
Universal mCloud initially partnered with Fulcrum in April 2019 in order to provide oil and gas field workers with head-worn, hands-free smart glasses. These smart glasses, which are powered by mCloud’s AssetCare platform, connect workers with real-time access to digital work instructions and remote assistance through the use of AI, 3D, and mixed reality.
The company predicts that there are over 1.4 million oil and gas field workers operating more than 500,000 assets across the continent whose roles would benefit from the enhanced efficiency and productivity these smart glasses provide.
Now that Universal mCloud has officially acquired Fulcrum, the rollout of this product should gain momentum. Universal mCloud initially planned to target initial rollouts of its smart glasses at Alberta-based oil and gas refineries.
Analysts at Echelon Wealth Partners have high hopes for mCloud, offering the company a price target of $1.10 CAD and a “speculative buy” rating. The analyst credited the company’s sizeable acquisitions and positive Pro-forma Q4 2018 financial results.
He also said he was surprised to see the company’s stock price in the $0.30–$0.40 range, signaling that Universal mCloud could be massively undervalued.
It will be exciting to see how the completion of this acquisition will help Universal mCloud with the rollout of its smart glasses. The company’s share price reacted favorably to the news, increasing 1.35% to $0.38 CAD by 2:40 pm EST.
Featured Image: Depositphotos @ Kokhanchikov