Water Intelligence PLC Reacquisition of Seattle Franchise (6892K)
06 Enero 2021 - 1:00AM
UK Regulatory
TIDMWATR
RNS Number : 6892K
Water Intelligence PLC
06 January 2021
Water Intelligence plc
Reacquisition of Seattle Franchise
Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or
"Group"), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to announce that it
has reacquired the Seattle franchise of its American Leak Detection
("ALD") subsidiary.
The reacquisition is the largest franchise reacquisition to date
and strategic in tying together different growing business segments
and creating efficiencies. The transaction is accretive for
shareholders and, combined with the December reacquisitions of New
Orleans, Louisiana and Melbourne, Florida creates significant
momentum for accelerating growth in 2021. It caps a strong 4Q for
the Group that also saw two insurance company wins and an
oversubscribed capital raise. It also capped a 2020 to remember
during which the Group navigated well around the challenges of the
Covid marketplace.
For 2020, Seattle reached approximately $2.7 million in revenue
and $0.8 million in profits before tax adjusted. The purchase price
is $5.5 million in cash, split $5 million based on 2020 performance
and another $500,000 based on higher financial performance through
year-end 2022, which is subject to clawback. The Group paid $4
million at Closing and will pay the remainder through January
2023.
The Seattle reacquisition creates a northwest regional hub in
the U.S. for the Group. Seattle has several key attributes for
unlocking operating synergies. First, the Seattle team has
substantial experience with municipal solutions. As a result,
Seattle is an optimal location for the establishment of the US
headquarters for the Group's fast-growing, UK-based, Water
Intelligence International subsidiary which specializes in
municipal offerings. Second, Seattle will enable the Group to tie
together its growing corporate operation in Portland to the south
and a new greenfield location to be set up in Vancouver, Canada to
the north. Third, Seattle is an important center for "green
economy" technology in the US. During 2Q 2020, the Group reacquired
its San Jose, California franchise in the heart of Silicon Valley.
The Seattle location, linked to the Group's San Jose operations,
reinforces the Group's access to new technologies that are relevant
for leadership in the Green Economy.
In 3Q the Group received the Green Economy Mark from the London
Stock Exchange and in 4Q Water Intelligence plc was included in
various MSCI indices. Building on such recognition through the
Seattle reacquisition, the Group intends to further sharpen its
brand identity during 2021 as a leading "technology-enabled"
service for the green economy - an investment thesis attractive to
institutional investors, especially those in Silicon Valley.
The leadership team in Seattle will be staying to help grow the
Northwest operations. In addition, one member of the leadership
team will be moving to San Jose to grow that corporate operation
and to link the technology operating plan between San Jose and
Seattle.
Executive Chairman, Dr. Patrick DeSouza commented: "We are
delighted to start 2021 with the reacquisition of Seattle. It is a
cornerstone location for our growth plan and will reinforce our
technology leadership for the Green Economy. Most importantly, we
have added to our already strong management team with a team that
has built a multi-million dollar location themselves. We had a
remarkable 2020 despite the challenges of Covid and, importantly,
we have positioned ourselves with significant momentum for a very
strong 2021."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
Enquiries :
Water Intelligence plc
Patrick DeSouza, Executive Chairman Tel: +1 203 654 5426
Adrian Hargrave, VP Corporate Development + 44 (0)7775 701 838
WH Ireland Limited - NOMAD & Broker Tel: +44 (0)207 220 1666
Adrian Hadden
James Sinclair-Ford
Matthew Chan Tel: +44 (0)7920 599 793
Dowgate Capital Ltd - Broker &
Advisor
Stephen Norcross
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END
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