- Pointerra (3DP) has signed a non-binding term sheet to acquire the business assets and undertakings of U.S. drone-based digital asset management business Airovant
- Pointerra will issue the company US$1 million (roughly A$1.29 million) in shares, based on the closing price at the date of the purchase agreement, plus a further two million ordinary shares to each Airovant employee
- The acquisition is set to step up Pointerra’s U.S. operations in the facilities management and energy utilities market and shorten the sales cycle in these key sectors
- The contract is set to be signed in May 2021, with settlement due to take place the following month
- Pointerra shares are up 3.42 per cent, trading at 75.5 cents
Pointerra (3DP) is set to acquire U.S. drone-based digital asset management business Airovant.
A non-binding term sheet has been signed to acquire Airovant’s business assets and undertakings for US$1 million (roughly A$1.29 million) in ordinary shares.
Airovant’s existing customer contracts and intellectual property are set to be acquired in the deal, with the parties planning to integrate elements of Airovant’s existing cloud digital asset management platform, Airoport, and underlying 2D data analytics technology into Pointerra’s cloud platform.
The proposed acquisition is subject to the competition of further due diligence activities, and the execution of a formal business purchase agreement between Pointerra, Airovant and its four founders.
Upon settlement, Pointerra will issue the US$1 million in shares, based on the closing price of Pointerra shares at the date of the business purchase agreement, and will enter into employment agreements with the Airovant founders.
These agreements will include the issue of up to two million ordinary shares to each Airovant employee, with the shares vesting in three equal tranches over a three-year period.
After first working with Airovan in 2020, Pointerra says it became apparent the companies shared a vision for growing a subscription-based digital asset management platform, using both 2D and 3D data.
The proposed acquisition will deliver a step-up in the scale of Pointerra’s U.S. operations in the facilities management and energy utilities market and is expected to help shorten the sales cycle in these key sectors.
“Attracting the Airovant team to potentially bolster our U.S. and global operations will also deliver new customers, revenue and ACV contribution – we couldn’t be happier with the potential acquisition,” said Pointerra Managing Director and Co-Founder, Ian Olson.
Subject to the completion of due diligence activities, Pointerra expects that the contribution made by Airovant’s business will see cashflow and earnings a increase in FY22, and should also deliver an initial uplift in Pointerra’s regularly reported annual contract value.
Pointerra says it expects to be in a position to sign the agreement in May 2021, with settlement likely to take place the following month.
Pointerra shares are up 3.42 per cent, trading at 75.5 cents at 9:30 am AEST.