- The latest acquisition announcement is in line with Kontrol Energy’s strategic plan to build a diversified portfolio of assets and carry out a sustainable growth strategy throughout 2019
- Earlier in the year, Kontrol Energy announced its acquisition of Dimax Controls’ patents and intellectual property, adding a new product to its IoT and SaaS portfolio
- Company plans to maintain an annual growth rate of over 20 percent via strategic acquisitions and organic growth measures
On March 14, 2019, Kontrol Energy Corp. (CSE: KNR) (OTCQB: KNRLF) (FSE: 1K8) announced its entry into a letter of intent (LOI) to acquire a leading electrical retrofit services provider. The acquisition is yet another milestone in a strategic series of moves by Kontrol Energy for the purpose of building assets and realizing a 2019 growth strategy.
The target of the LOI is a company that has been providing the Canadian market with high quality, value-added electrical efficiency services. The yet-unnamed company has been in business for over 15 years, and it has averaged unaudited revenues of over $6.5 million and normalized EBITDA of $700,000 over the past three years.
According to an official Kontrol Energy press release (http://ibn.fm/UGOHi), the purchase price is set at C$3 million. The deal is subject to working capital adjustments, with a holdback of $300,000 for 12 months.
Prior to the latest announcement, Kontrol Energy carried out another strategic acquisition in January 2019. On January 16, Kontrol Energy announced the purchase of Dimax Controls Canada Inc.’s patents and intellectual property assets. With the purchase, Kontrol Energy also announced that it will rebrand the Dimax energy software technology as Kontrol SmartSite (http://ibn.fm/lR9gA).
Kontrol SmartSite is a building energy software product designed to assist and enhance the operation of complex HVAC systems for large multi-residential and commercial buildings. It operates as a SaaS platform that is highly scalable.
This technology joins Kontrol SmartSuite as part of the company’s expanding portfolio of IoT energy and property technologies, as Kontrol Energy CEO Paul Ghezzi noted in a news release. The addition of the Dimax Controls intellectual property and patents is expected to enable further technological developments in the future.
On January 24, Kontrol Energy provided a detailed update on its acquisition strategy for 2019 and beyond (http://ibn.fm/b1Qa2). Growth of current operations in energy retrofits and emission compliance is a primary focus. The company will strive to expand across Canada via a series of strategic acquisitions.
As per the company’s official announcement, strategic acquisitions will come alongside organic growth initiatives. The company plans to maintain annual growth rates of over 20 percent, and the primary driver of the increase is expected to be Kontrol Energy’s technology and revenue synergies across its various operating subsidiaries.
Based in Ontario, Canada, Kontrol Energy is a leader in the field of energy efficiency. The company develops IoT and SaaS technology solutions designed to reduce clients’ overall cost of energy while also bringing down greenhouse gas emissions.
For more information, visit the company’s website at www.KontrolEnergy.com