mCloud Technologies Corp (CVE:MCLD) (OTCMKTS:MCLDF) has finalized the acquisition of Atlanta-based 3D technology company Construction Systems Associates, the company said Monday.
The deal positions mCloud to become one of the largest providers of 3D asset management capabilities to the nuclear power industry in North America.
The Vancouver-based company also announced plans to complete its first 3D Digital Twin deliveries with customers in North America, the Middle East and Southeast Asia before the end of 2020.
mCloud’s chief growth and revenue officer Costantino Lanza said demand for its 3D Digital Twin capabilities is “strong and swift."
"We expect the acquisition of CSA will expedite the upcoming delivery of new 3D capabilities to customers in North America, the Middle East, and Southeast Asia throughout 2020 and beyond,” Lanza told shareholders in a statement.
"The combination of CSA's robust 3D capabilities and our AssetCare platform enables us to deliver powerful 3D Digital Twins to our process industry customers at oil and gas, petrochemical, LNG, and pipeline facilities worldwide."
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.
Under the terms of the deal, mCloud paid US$500,000 in cash and issued 380,210 shares of the firm. Additional cash payments of up to US$1.25 million and up to US$500,000 worth of shares may be made if certain earnout conditions are met.
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