BuildingIQ Boosts Its Capabilities & Growth Prospects By Acquiring Greenfield Building Sector Partner, Buildingsense
August 23, 2018
BuildingIQ Inc. (ASX: BIQ), a tech-enabled services business, today announced the execution of a definitive agreement to acquire its greenfield building sector partner, Buildingsense Australia Pty Ltd (Buildingsense).Highlights
− 1H FY2019 net positive cashflow of approx. A$350,000
− Improved terms of trade and cash receipts (in greenfield sector) by 30 days
“The acquisition of Buildingsense, which has been a highly valued partner of BuildingIQ in Australia since 2016, secures our greenfield market opportunity locally and delivers significant financial benefits to the Company. Importantly, it also provides a platform for our previously stated intentions to grow this sector globally.” Mr. Michael Nark, President & CEO of BuildingIQ, said in commenting on the deal.
“The deal strengthens our sales and marketing capabilities in the greenfield sector and also allows BuildingIQ to offer additional 5i Platform enabled solutions – Sauter BMS and Pettinaroli Valves – to clients locally through distribution rights owned by Buildingsense.”
About BuildingSense Australia
Buildingsense was founded in 2015 by Hari Singh and is headquartered in Perth, Western Australia. The firm has strong capabilities in services related to the design, supply, engineering, installation, commissioning and service of building technologies. Additionally, Buildingsense has the distribution rights in Australia for the integrated Building Management Systems and related building technologies of the Swiss-based Sauter Group; and has partnered with a number of companies – including Pettinaroli and GAMI, to offer valves, air handling and fan coil units. Acquisition Delivers Financial and Strategic BenefitsThe strategic partnership with Buildingsense, working on multiple greenfield contracts in WA and NSW to deliver our 5i Platform, has been a strong contributor to our overall growth in Australia, delivering total bookings of over A$4.0 million (approximately A$2.5 million of which is still to be recognised as revenue).
Financial Benefits From Acquisition
The key terms of BuildingIQ’s acquisition of Buildingsense are:
− Deferred cash payments of A$80,000 due on 15 December 2018, A$90,000 due on 15 August 2019, subject to the achievement of certain revenue targets and A$30,000 due on or about 30 June 2020, subject to any warranty claims.
For further information contact:
Ph. +61 2 9360 0602
Ph.: +61 414 861 629
BuildingIQ (ASX: BIQ) helps building owners and operators worldwide lower energy use, increase building operations efficiency and enhance tenant comfort. The Company’s 5i cloud-based platform and Managed Services deliver on the promise of Internet of Things (IoT) for buildings. Over 100M square feet of building space is currently under management with BuildingIQ.www.buildingIQ.com
Foreign Ownership Restrictions
BuildingIQ’s CHESS Depositary Interests (CDIs) rely on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers or sales which are made outside the US. Accordingly, the CDIs have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. The holders of BuildingIQ’s CDIs are unable to sell the CDIs into the US or to a US person unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a ‘FOR US’ designation on the ASX. This designation restricts any CDIs from being sold on ASX to US persons. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.