Last checked at 2 Nov 2016 07:00
Water Intelligence plc
("Water Intelligence" or the "Company")
Acquisition of Australian Assets: Advanced Leak Detection and Australian Watermain("ADV" and "AWL" respectively, and together, the "Australian Companies")
The board of Water Intelligence, a leading provider of non-invasive leak detection and remediation solutions, is pleased to announce the acquisition of ADV and, pending a regulatory clearance that is expected in the near-term, AWL. Both Australian Companies, located in Sydney, are part of a former franchise of American Leak Detection - a core business unit of Water Intelligence. Total consideration for the transaction is US$434,000. Of the total consideration, $105,409 is allocated at Closing, $102,470 is to be paid on the first anniversary of Closing and $226,065 is to be paid on the second anniversary of Closing. An adjustment in the Closing amount in favor of Water Intelligence shall be made depending on the amount of additional time needed for regulatory clearance for AWL. Based on the trailing twelve months sales and profits before tax from the end of Q3 2016 to the end of Q3 2015, the acquisition of the Australian Companies is anticipated to be accretive to earnings.
Strategic Rationale for the Acquisition
Water Intelligence's objective remains to form a multinational growth company that builds on its existing assets and technology expertise present in the US, UK, Canada and Australia. The Company, in September 2016, acquired NRW Utilities, a growing UK company providing water leak detection and municipal sewer and wastewater services. NRW has experience with international execution of municipal work and its service offering is being integrated with the Company's core American Leak Detection business.
Today, the acquisition the Australian Companies represents the next installment of the Water Intelligence corporate growth strategy. The Australian Companies are profitable and execute residential and commercial leak detection services through ADV and municipal services with Sydney Water through AWL. With this acquisition, Water Intelligence initiates a corporate store presence in Sydney, which will enable it to further assist the growth of other existing American Leak Detection franchisees in Australia; sell additional franchises in Australia; and develop a further corporate store presence in other Australian territories.
Information on ADV and AWL
ADV and AWL, respectively, specialise in providing leak detection and network survey services in Sydney, Australia. The Australian Companies generated combined revenues of US$790,000 and profits before tax of US$311,000 based on unaudited management accounts for the trailing twelve months from the end of Q3 2016. Combined net assets are US$566,287.
Patrick DeSouza, Executive Chairman of Water Intelligence plc commented:
"I am delighted to announce the acquisition of the Australian Companies and to work with one of our former franchisees. One of our American Leak Detection managers has already relocated to Sydney and we expect transition to be smooth. The acquisition will accelerate the development of a strategic platform in Australia to help all of our existing Australian franchisees. We are looking forward to building out the American Leak Detection network in Australia and introducing capabilities from NRW Utilities in the fast growing water conservation market in Australia."
Enquiries:
Water Intelligence plc Patrick DeSouza (Executive Chairman) Tel: +1 203 654 5426
finnCap Ltd Adrian Hargrave / Giles Rolls (Corporate Finance) Stephen Norcross (Corporate Broking) Tel: +44 020 7220 0500
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.