mCloud Technologies Corp (CVE:MCLD) (OTCMKTS:MCLDF) announced Monday it has signed the final binding stock purchase agreement to acquire Construction Systems Associates Inc, an Atlanta-based 3D technology company.
In a statement, the Vancouver-based company said the acquisition of CSA, effective December 13, positions mCloud to become one of the largest providers of 3D asset management capabilities to the nuclear power industry in North America.
More than 80% of all nuclear plants in the US rely on technology provided by CSA to facilitate plant operations and complex change management activities. Current CSA customers include energy heavyweights Exelon Corporation (NASDAQ:EXC), Dominion Energy Inc (NYSE:D), The Southern Company (NYSE:SO), the Public Service Enterprise Group (NYSE:PEG), Toshiba Corporation (OTCMKTS:TOSBF), and many more.
The core technologies CSA has developed for use in the nuclear industries, including capabilities to deliver accurate 3D asset data for large facilities and complex assets, will be fully integrated into mCloud's AssetCare platform to enhance the value of the company's 3D Digital Twin capabilities across all customer segments.
CSA's capabilities will also serve as a foundation to combine high-performance 3D with the structured asset data already collected by AssetCare for use in mixed-reality solutions delivered via hands-free digital eyewear such as the RealWear HMT-1Z1.
"We are very excited to have the CSA family join mCloud," said Costantino Lanza, mCloud's chief growth officer. "CSA is already an industry leader in delivering accurate 3D asset models to the nuclear power industry, and by merging their technologies with the AI-powered capabilities we provide through AssetCare, we will be able to take accuracy to an entirely new level for numerous asset management applications."
Lanza added that “we expect to see explosive demand from all segments of our business for their integrated capabilities, including our Smart Process customers in Western Canada, the Middle East, oil and gas hubs in the United States including Texas, and Southeast Asia.
The consideration payable to the vendors for the acquisition of all of the outstanding stock of CSA will consist of the following:
- US$500,000 in cash;
- The issuance of such number of common shares of mCloud as is equal to US$1,250,000 divided by the 10-day volume-weighted average trading price of the company's common shares preceding the date of this announcement; and
- Conditional on certain earnout conditions being met, additional cash payments of up to US$1,250,000 and up to US$500,000 worth of common shares of the company.
mCloud expects to complete the transaction before the end of January 2020. The transaction remains subject to final approvals, including the approval of the TSX Venture Exchange. A letter of intent to purchase CSA was originally announced on January 11, 2018.
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