Kontrol Tech To Acquire Building Solutions Firm For $6.75 Million
Kontrol Technologies (NEO: KNR) is set to resume trading this morning following a halt on Wednesday. The halt was a result of the news that the company is acquiring a “leading” building solutions company, whom focuses on the integrated installation of building automation systems, for a purchase price of $6.75 million.
The company did not provide a name for the operator being acquired, however did provide some basic financial details of the firm. The target reportedly had audited revenues of $43.0 million for fiscal 2020, while posting net income before tax of $128,000. The company reportedly has $120 million in oncoming work over the next three years, with the firm focusing on large projects traditionally that result in one-time revenues, as opposed to recurring revenues.
Under the terms of the arrangement, Kontrol is to pay an upfront $6.75 million. Consideration is to consists of $3.25 million in the form of cash, while $3.5 million is to be funded via a vendor take-back transaction. A performance payment is also to be made in connection with the financing, equal to 45% of adjusted cumulative earnings after tax in excess of $4.5 million.
The transaction is currently slated to close in August 2021.
Kontrol Technologies last traded at $0.88 on the Neo.
Information for this briefing was found via Sedar and Kontrol Energy Systems. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
