- Kontrol Technologies (KNR) has signed a Letter of Intent (LOI) to acquire a building service and solutions company in Alberta
- The target company is a well-established service and solutions provider that provides commercial and multi-residential services to approximately 700 different locations annually
- The acquisition will cost $3.5 million in cash and $500,000 of common shares in Kontrol Technologies
- Kontrol Technologies provides solutions and services to improve energy management, monitor continuous emissions and accelerate the sustainability of any building
- Kontrol Technologies Corp. (KNR) is up 7.14 per cent on the day, trading at C$1.20 per share at 10 am ET
Kontrol Technologies (KNR) has signed a Letter of Intent (LOI) to acquire a building service and solutions company in Alberta.
The target company is a well-established service and solutions provider for a wide range of blue-chip customers, including municipalities, property managers, developers, and real estate investment trusts. The company provides commercial and multi-residential services to approximately 700 different locations annually with strong repeat business.
“We remain focused on national expansion as well as adding recurring revenues to our existing platform,” says Paul Ghezzi, CEO of Kontrol Technologies. “In addition to an attractive customer base, in Western Canada, the repeat nature of the company’s revenues provides a high-value platform that we will seek to leverage with our proprietary technology.”
Based on the fiscal year ended April 30, 2022, the company generated $5.4 million in revenue with a 73 per cent gross margin and a normalized EBITDA margin of 20 per cent.
The acquisition will cost $3.5 million in cash, $500,000 of common shares in Kontrol Technologies and a total earn-out of up to $750,000 over a three-year period, subject to achieving certain earnings targets.
The acquisition is targeted to be completed by December 15, 2022, subject to a number of conditions, including the finalization of a definitive Share Purchase Agreement and all required approvals.
Kontrol Technologies provides solutions and services to improve energy management, monitor continuous emissions and accelerate the sustainability of any building.
Kontrol Technologies Corp. (KNR) is up 7.14 per cent on the day, trading at C$1.20 per share at 10 am ET.
