Autopro Automation Consultants: Universal mCloud to acquire Fulcrum Automation Technologies, Autopro Automation Consultants

Universal mCloud Corp (CVE:MCLD) (OTCQB:MCLDF) announced Wednesday that it has signed a letter of intent to acquire Autopro Automation Consultants Ltd, resulting in a three-party transaction that will make mCloud a major technology provider in the oil and gas sector. The transaction is an arm's length acquisition where mCloud will leverage its AssetCare platform to impart artificial intelligence, 3D, and cloud computing with the industrial automation expertise and customer footprint of Fulcrum Automation Technologies Ltd and Autopro to the oil and gas industry. This announcement comes after mCloud signed a C$15 million licensing agreement with Fulcrum. As a direct result of the transaction, mCloud expects to add approximately C$35 million in revenue and C$5.5 million in EBITDA, the company disclosed in a statement. READ: Universal mCloud makes a push into China, North American oil and gas market "Combining mCloud with Fulcrum and Autopro will let us help oil and gas providers all over the world use AI and analytics to tap into large volumes of data in the cloud at a fraction of current IT costs," said Universal mCloud CEO Russel McMeekin. "While our relationship with Fulcrum began with a licensing agreement signed last February, as we began to work together, we decided that a full combination created the most value for both shareholders and customers." Three way transaction The transaction will be structured in such a way that Fulcrum will initially acquire 100% of the issued and outstanding shares of Autopro for cash and common shares of Fulcrum. Immediately thereafter, mCloud will acquire 100% of the issued and outstanding shares of Fulcrum. Fulcrum is currently debt-free. After completing the transaction, mCloud will own 100% of Fulcrum and indirectly Autopro. The deal is valued at approximately C$18 million in cash, to be funded by C$18 million in debt to be raised prior to closing, and the issuance of 60 million mCloud common shares. The shares will be distributed to the shareholders of Fulcrum and Autopro, with the exact allocation yet to be determined. Based on a closing share price of C$0.41 on April 23, 2019, the total transaction value is C$42.6 million. Considerable synergies "We see considerable synergies aligning Fulcrum and Autopro with mCloud, as the combined entity now has the advanced technology and deep industry expertise to potentially drive considerable revenue growth in the oil and gas sector globally," said Fulcrum chairman Shane Maine. "The mCloud transaction will bring disruptive capabilities to Autopro's core business of better optimizing customer assets." Meanwhile, Autopro CEO Mike Lane said mCloud's AssetCare provides exceptional "strategic alignment with Autopro's expertise in industrial process control." "The combination of our in-depth knowledge of process industry facilities with mCloud's cutting edge AI and analytics will enable us to deliver even greater value to customers while helping them manage and optimize the performance of their facilities," said Lane. Headquartered in Vancouver, Universal mCloud uses artificial intelligence and analytics to curb energy waste, maximize energy production and improve energy infrastructure. The company, which boasts tech and operations centers in San Francisco and Bristol, Pennsylvania, caters to four business segments: smart buildings, wind energy, power utilities and oil and gas. Contact Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive