AirIQ Announces Strategic Acquisition

Executive Summary

• AirIQ Inc. announced the acquisition of assets, customers, software and related IP from a privately‑held IoT services company for up to C$850,000.
• The acquired base includes >1,000 devices generating ~C$450k of annual recurring revenue with >70% margins, plus C$300k of hardware revenue and C$225k EBITDA (unaudited) over the prior 12 months.
• Purchase price consists of C$600k cash at closing, C$150k held in escrow, and a potential earn‑out of up to C$100k tied to gross profit growth; the deal is funded from operating cash.

Key Details

• Acquisition Scope: Customers, video telematics software solutions, URLs, licenses, marketing assets.
• Revenue Profile of Acquired Assets:
• Recurring revenue: ~C$450,000 annually (margin >70%).
• Hardware revenue (prior 12 months): ~C$300,000.
• EBITDA (prior 12 months, unaudited): ~C$225,000.
• Purchase Price Structure:
• Cash at closing: C$600,000.
• Escrow amount: C$150,000.
• Earn‑out potential: up to C$100,000 contingent on gross profit increase during the 12 months post‑closing.
• Funding Source: Operating cash on hand; no external financing or closing costs included.
• Transition Services Agreement: One‑year agreement with principals of the acquired business to ensure smooth customer and operational handover.
• Strategic Rationale (CEO Quote): The acquisition provides high‑margin recurring revenue, expands AirIQ’s video telematics offering, and supports immediate demand in growth channels.

Notable Quotes

“We are pleased to have been able to acquire these strategic assets. The immediate positive impact of the acquired base of customers with high margin recurring revenues provides another significant step forward in our growth strategy,” – Mike Robb, President & CEO, AirIQ.

All amounts are expressed in Canadian dollars.