HOUSTON–(Company WIRE)–Geospace Technologies (NASDAQ: GEOS) right now introduced that it has acquired 100 % of the superb shares of Aquana, LLC, a thorough wi-fi drinking water monitoring and handle technique company. Less than terms of the arrangement, Aquana will run as a wholly owned subsidiary of Geospace Systems. The Company intends to retain Aquana’s workers, more strengthening Geospace’s very proficient complex workforce. Phrases of the transaction contain an preliminary dollars payment of $1.4 million at closing, matter to adjustment, and extra contingent money payments above a 6-12 months earn-out time period. The contingent money payments will be derived from revenues produced throughout the earn-out period of time from items and expert services marketed by Aquana, LLC.
Founded in 2017, Aquana gives a major Internet of Things (IoT) drinking water administration platform that delivers remote shut-off valve management, remote AMI meter reading through, as properly as leak and burst protection for municipal water utilities, multi-dwelling qualities, and commercial structures. Aquana combines linked smart valve components with cloud-primarily based application in a Software as a Assistance (SaaS) recurring income model.
Rick Wheeler, CEO and President of Geospace Technologies, reported, “Building on Geospace’s deep technological know-how target and specific enterprise diversification approach, I’m delighted to announce the acquisition of Aquana. Aquana’s leading IoT platform presents multifunctional, modular, and enterprise-all set solutions serving the fast rising residence management and drinking water utility markets. Totally complementary to our current solutions and current market abilities, Aquana’s condition-of-the-art techniques incorporate sensors, are Web connected, and use configurable algorithms to help consumers maximize income, restrict prices, and mitigate h2o damage.”
Steve Askew, CEO of Aquana, LLC, said, “We are fired up to be a part of the Geospace group. Backed by Geospace’s decades of technology advancement, producing, and substantial buyer support, Aquana can superior serve our prospects, scale far more swiftly, and acquire new goods. Moreover, property professionals and drinking water utility operators alike will be capable to deploy smart leak detection and distant disconnect capabilities to deliver much more benefits to people and tenants.”
Aquana’s leak detection programs provide a precious role in the home management sector, figuring out and alerting property entrepreneurs of h2o harmful functions in their initial levels. Analysts estimate that somewhere around two percent of U.S. qualities expertise leak-associated problems just about every calendar year, ensuing in a corresponding boost in insurance plan claims. 2017 water destruction insurance plan promises payments ended up $13 billion. The rise in these types of promises has facilitated the development of leak detection methods by the far more than 400 Water Utilities that serve around 140 million domestic clients. Aquana’s small business tactic seeks to capture 5% of the remote shut-off valve current market which represents a $1.4B possibility. In addition, Aquana’s submetering, compliance, and automation features engage in a useful part in aiding users conserve water, guarantee compliance with municipal regulations, and justify premium rents.”
Moreover, Aquana’s Net linked remote worth system improves a utility’s capacity to save time, income, and expenditure. Industry analysts estimate that approximately 5 to ten p.c of h2o utility end users really do not fork out their costs, and that every single time a utility is pressured to disconnect and then reconnect service, significant labor and operational expenditures are incurred. Aquana’s sensors and actuators permit utilities to disconnect and reconnect providers remotely from a protected central locale.
The Aquana business division will reside in Geospace’s Adjacent Marketplaces phase. This segment generated a 10% boost in yr-in excess of-12 months income for the six-month interval ending March 31, 2021, regardless of the debilitating consequences of the throughout the world COVID-19 pandemic. Management thinks that its know-how concentrated diversification system will keep on to pay out sturdy dividends.
Wheeler concluded, “I’d like to welcome the remarkably revolutionary and gifted Aquana staff to our Geospace workforce. Via the combination of our systems, engineering, and main producing competencies, we look forward to forging a financially rewarding and profitable organization as we continue on to drive final results for our valued clientele and dependable shareholders.”
About Geospace Systems
Geospace principally types and manufactures seismic instruments and tools. We marketplace our seismic goods to the oil and gasoline business to locate, characterize and watch hydrocarbon-creating reservoirs. We also current market our seismic solutions to other industries for vibration checking, border and perimeter safety and several geotechnical apps. We design and manufacture other solutions of a non-seismic mother nature, which includes drinking water meter products, imaging machines and offshore cables.
Aquana’s leading Net of Issues (IoT) platform gives multifunctional, modular, and company ready remedies serving the speedily developing drinking water utility and assets management markets. The Company’s h2o management answers produce remote shut-off valve manage, distant AMI meter looking at, as perfectly as leak and burst security for multi-loved ones properties, professional buildings, and utilities. Aquana combines connected sensible valve components with cloud-dependent software package in a Computer software as a Service (SaaS) recurring profits model.
Forward On the lookout Statements
This press launch contains “forward-looking statements” within the meaning of Segment 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Exchange Act of 1934, as amended. These forward-on the lookout statements can be identified by terminology these kinds of as “may”, “will”, “should”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or related phrases. Statements that have these terms should be browse very carefully mainly because they talk about our foreseeable future expectations, include projections of our upcoming final results of functions or of our fiscal position or point out other forward-wanting details. Illustrations of forward-searching statements contain, among the others, statements that we make about the achievements of our transaction with Aquana and our diversification technique. These ahead-hunting statements replicate our present judgment about future situations and tendencies based on the facts at this time out there to us. Nonetheless, there will likely be gatherings in the upcoming that we are not ready to forecast or manage. The elements shown beneath the caption “Risk Factors” in our most recent Once-a-year Report on Form 10-K which is on file with the Securities and Trade Commission, as perfectly as other cautionary language in this kind of Annual Report, any subsequent Quarterly Report on Variety 10-Q, or in our other periodic stories, supply examples of hazards, uncertainties and activities that could trigger our actual outcomes to vary materially from the anticipations we describe in our ahead-seeking statements. These types of illustrations contain, but are not minimal to, the failure of the Aquana transaction and our diversification tactic to yield optimistic running effects. The prevalence of the situations described in these risk aspects and in other places in our most new Yearly Report on Form 10-K or in our other periodic experiences could have a substance adverse result on our business, final results of operations and economical situation, and actual functions and effects of functions might fluctuate materially from our present expectations. We assume no obligation to revise or update any forward-searching statement, no matter whether penned or oral, that we may make from time to time, whether as a final result of new details, upcoming developments or or else.