Universal mCloud Corp. (TSXV:MCLD) (OTCQB:MCLDF) got one step closer to acquiring Fulcrum Automation Technologies and Autopro Automation when it was granted conditional approval from the TSX Venture Exchange Monday morning.
The acquisition, which was first announced on April 24, 2019, will add $35 million CAD to Universal mCloud’s 2019 revenue and $5.5 million CAD in EBITDA and will allow the company to expand the footprint of its AssetCare™ platform.
By acquiring Fulcrum and Autopro, the company will be adding a number of major oil and gas customers along with industry-specific expertise to drive the delivery of integrated AI-based oil and gas solutions that combine AI, 3D, and mobile cloud computing technologies and will enhance Universal mCloud’s ability to grow revenues in the oil and gas sector globally.
“The closing of the Autopro acquisition will let us combine the technology talent we have at mCloud with the leading industry talent provided by Autopro to form a major digital asset management provider within the oil and gas market,” said Universal mCloud CEO Russ McMeekin.
The acquisition will see Fulcrum acquire 100% of Autopro shares for cash and common shares of Fulcrum. Immediately after, Universal mCloud will acquire 100% of Fulcrum’s outstanding shares. The companies expect to complete the closing conditions of the deal by the end of June 2019.
The deal will also bring Universal mCloud a step closer to uplisting to the NASDAQ.
Universal mCloud to Become Asset Management Leader in Oil and Gas Sector
Although its relationship with Fulcrum initially began with a licensing agreement, after they began working together, it became apparent that a full combination would create the most value for both shareholders and customers, according to McMeekin.
“Combining mCloud with Fulcrum and Autopro will let us help oil and gas providers all over the world use AI and analytics to tap into large volumes of data in the cloud at a fraction of current IT costs,” he said in April.
All of Universal mCloud’s M&A activity has caught the attention of analysts, with Echelon Wealth Partners giving the company a “speculative buy” rating following news of the deal.
Although mCloud has completed a number of acquisitions through 2018 and 2019, it was the acquisition of Fulcrum and Autopro that interested them the most, as it will “entrench MCLD as an asset management leader in the oil and gas sector.”
It will also give the company the opportunity to “be a one-stop shop for oil and gas operators, providing the distribution of software and hardware, a subscription-based analytics platform and real-time decision making.”
Improving Productivity in the Oil and Gas Industry
Universal mCloud initially created a relationship with Fulcrum to connect oil and gas workers with real-time access to digital work assistance capabilities using MCLD’s AssetCare platform delivered via head-worn, hands-free smart glasses.
The smart glasses will enable workers in the field to get access to the right information at the right time, combining the features of an AI-powered digital assistant with advanced 3D and mixed reality.
What’s more, real-time digital work instructions will enable workers to get guidance and verification as they work through complex procedures, ensuring they get jobs done right the first time. Smart work order management capabilities ensure workers focus on those field assets in most urgent need of attention.
The introduction of AssetCare will aim to improve the productivity and efficiency of over 1.4 million field workers operating over 500,000 assets in oil and gas across North America.
It will be exciting how the acquisition of Fulcrum and Autopro will help boost the rollout of Universal mCloud’s AssetCare for the oil and gas industry.
Universal mCloud’s share price is up 3.7% to $0.28 USD on the OTC at end of day Tuesday.
Featured Image: Universal mCloud