mCloud Technologies Corp. (TSXV:MCLD) (OTCQB:MCLDF), a leading provider of asset management solutions, combining IoT, artificial intelligence, cloud computing, and analytics, today announced that it has signed an Expression of Interest (EOI) to acquire Australian firm BuildingIQ (ASX: BIQ), a cloud-based building technology provider that uses IoT and AI to create energy savings and maximize building efficiency.
Opportunity for Excellent Synergies and Southeast Asia Expansion
While the EOI is non-binding and subject to a period of due diligence, the potential acquisition does represent an opportunity for excellent synergies between the firms, as well the possibility for mCloud to expand into key markets in Southeast Asia. Russ McMeekin, President and CEO of mCloud Technologies, described BuildingIQ as “a highly complementary business” to mCloud’s own AssetCare platform and pointed to its home base in Australia as “an anchor to expand our business development activities for smart buildings to Southeast Asia.”
“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),” said Mr. McMeekin.
BuildingIQ currently connects over 1,350 commercial buildings worldwide, 140 million square feet of which is 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. Under the terms of the deal, mCloud Technologies intends to provide BuildingIQ with a working capital facility that would be used to support BuildingIQ’s growth momentum in 2020.
The exact terms of the deal would see mCloud acquire every BuildingIQ CHESS Depositary Interests (CDIs) holders CDIs in exchange for 1 mCloud share for approximately every 441 CDIs held. This equates to a price of A$0.0158 per CDI, a 58% premium to BuildingIQ’s last closing price on the Australian Securities Exchange. Additionally, mCloud Technologies will also provide BuildingIQ with a loan of A$1.5 million, the use of which will be managed between the two firms. Provided all conditions are satisfied, the deal is expected to close on June 19, 2020.
mCloud Continues Impressive Expansion
News of the deal comes just two weeks after mCloud closed its acquisition of Atlanta-based 3D technology firm Construction Systems Associates Inc (CSA). That deal further solidifies mCloud’s position as a leading provider of 3D asset management capabilities in the North American nuclear power industry, with over 80% of nuclear plants in the US currently relying on CSA-provided technology to facilitate plant operations.
This string of impressive acquisitions has helped drive mCloud stock to trade near an all-time peak of $6.35, with the stock more than doubling over the last 12 months. With the imminent rollout of 5G technology, the Vancouver-based firm looks set to be on the frontline of asset management solutions and could be set for a big year ahead.
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