Water Intelligence PLC Acquisition of IP Assets (9591V)
20 Abril 2021 - 1:00AM
UK Regulatory
TIDMWATR
RNS Number : 9591V
Water Intelligence PLC
20 April 2021
Water Intelligence plc
Acquisition of IP Assets for Irrigation and Stormwater
Solutions
Water Intelligence plc (AIM: WATR.L) (the "Group" or "Water
Intelligence"), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to announce the
acquisition of intellectual property assets ("IP") from FastDitch,
Inc., a US corporation ("FastDitch"). The IP Assets will be used to
launch a new subsidiary of the Group's core American Leak Detection
business ("ALD") dedicated to providing water infrastructure
solutions. The subsidiary will operate under the tradename
Intelliditch. As set forth in a recent market communication, the
Group is accelerating its growth plan given the anticipated
increase in market demand for water infrastructure solutions
stimulated by the Biden Administration's American Jobs Plan.
The IP will be used to manufacture proprietary lightweight HDPE
lining solutions for earthen or concrete water channels enabling
cost-effective reduction of water loss. The products are also
adaptable for mitigating stormwater run-off problems. Given the
multi-year drought in the American West, demand for effective
irrigation solutions is acute. In addition, the Biden
Administration's water infrastructure initiatives target the
problem of stormwater run-off. ALD's 150+ corporate and franchise
locations across the US will provide sales and distribution support
to customers - residential, property management and municipal -
needing liner solutions after benefiting from ALD's pinpoint leak
detection.
It is anticipated that the new subsidiary will contribute to
Group sales during 2H of this year. Manufacturing of liner products
by a contractor will start immediately with modest upfront expense
for tooling. Manufacturing will be calibrated to current pre-sales
and customer orders.
The purchase price for the IP is a 25% equity stake for
FastDitch in Intelliditch and options for 100,000 shares of Water
Intelligence at an exercise price of 822.5 pence, being yesterday's
mid-market Closing price. The acquisition agreement provides
FastDitch incentives to increase its equity stake in the subsidiary
to a maximum of 40% based on Intelliditch achieving trailing twelve
months revenue of $3.75 million and minimum of $0.35 million in
profits.
The board of Intelliditch will be Chaired by Daniel McDonald, a
Silicon Valley veteran with venture capital experience, whose
addition to the Water Intelligence management team was announced
during 2020.
Daniel McDonald commented : "Water Intelligence is really a
technology brand creating solutions for preserving the world's most
precious resource. American Leak Detection pioneered proprietary
acoustic technology solutions for minimally-invasive leak
detection. Over the last two years, Water Intelligence has advanced
the Group's technology profile with investments in sewer diagnostic
technology for both residential and municipal markets and video
e-commerce to distribute new water-related consumer products.
Addressing the tremendous inefficiencies of water conveyance by
open channels all around the world is a natural extension of Water
Intelligence's mission. We will continue to make technology
investments that reinforce the Group's sales trajectory by
addressing demand for more solutions by our existing multinational
customer base."
Joining the board of the new ALD subsidiary, Ken Suazo and Maria
Montoya, principals of FastDitch commented: "On behalf of
FastDitch, Inc., we are excited to join American Leak Detection in
bringing to market our proprietary liner technology. We have proven
our various technology solutions with irrigation districts and
municipalities across the United States showcasing agricultural
water conservation projects, as well as stormwater management
projects. We look forward to working with ALD locations starting
with agribusiness customers in the Central Valley of California and
New Mexico then expanding across the United States and globally. We
also look forward to working with ALD's sales team to design more
products for water infrastructure."
Dr. Patrick DeSouza, Executive Chairman of Water Intelligence
added: "We are pleased to acquire such cutting-edge IP from
FastDitch. Market demand for irrigation and stormwater run-off
solutions is strong and only growing. The technology and
engineering expertise provided by FastDitch combined with our
American Leak Detection's sales footprint is a powerful
combination. The solutions that we have acquired today add to our
portfolio and reinforce the growth trajectory for our Group."
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 Tel: +1 203 654 5426
Chairman
Intelliditch, Inc. Tel: +1 650 465 8929
Daniel McDonald, Chairman
WH Ireland Limited - Tel: +44 (0)207 220
NOMAD & Broker 1666
Adrian Hadden
James Sinclair-Ford
Matthew Chan
Dowgate Capital - Joint Tel: +44 (0)20 3903
Broker 7721
Stephen Norcross
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