Company Expands Capabilities in Internet of
Things and Smart City Products
Geospace Technologies (NASDAQ: GEOS) today announced that it has
acquired 100 percent of the outstanding shares of Aquana, LLC, a
comprehensive wireless water monitoring and control system
provider. Under terms of the agreement, Aquana will operate as a
wholly owned subsidiary of Geospace Technologies. The Company
intends to retain Aquana’s employees, further strengthening
Geospace’s highly skilled technical workforce. Terms of the
transaction include an initial cash payment of $1.4 million at
closing, subject to adjustment, and additional contingent cash
payments over a six-year earn-out period. The contingent cash
payments will be derived from revenues generated during the
earn-out period from products and services sold by Aquana, LLC.
Founded in 2017, Aquana provides a leading Internet of Things
(IoT) water management platform that delivers remote shut-off valve
control, remote AMI meter reading, as well as leak and burst
protection for municipal water utilities, multi-dwelling
properties, and commercial buildings. Aquana combines connected
smart valve hardware with cloud-based software in a Software as a
Service (SaaS) recurring revenue model.
Rick Wheeler, CEO and President of Geospace Technologies, said,
“Building upon Geospace’s deep technology focus and targeted
business diversification strategy, I’m pleased to announce the
acquisition of Aquana. Aquana’s premier IoT platform offers
multifunctional, modular, and enterprise-ready solutions serving
the rapidly growing property management and water utility markets.
Fully complementary to our existing products and market expertise,
Aquana’s state-of-the-art systems incorporate sensors, are Internet
connected, and use configurable algorithms to help clients maximize
revenue, limit costs, and mitigate water damage.”
Steve Askew, CEO of Aquana, LLC, said, “We are excited to join
the Geospace team. Backed by Geospace’s decades of technology
development, manufacturing, and extensive customer service, Aquana
can better serve our customers, scale more rapidly, and develop new
products. Moreover, property managers and water utility operators
alike will be able to deploy intelligent leak detection and remote
disconnect capabilities to provide more benefits to consumers and
tenants.”
Aquana’s leak detection systems serve a valuable role in the
property management sector, identifying and alerting property
owners of water damaging events in their initial stages. Analysts
estimate that approximately two percent of U.S. properties
experience leak-related damage each year, resulting in a
corresponding increase in insurance claims. 2017 water damage
insurance claims payments were $13 billion. The rise in such claims
has facilitated the growth of leak detection systems by the more
than 400 Water Utilities that serve approximately 140 million
domestic customers. Aquana’s business strategy seeks to capture 5%
of the remote shut-off valve market which represents a $1.4B
opportunity. In addition, Aquana’s submetering, compliance, and
automation features play a valuable role in helping users conserve
water, ensure compliance with municipal regulations, and justify
premium rents.”
Additionally, Aquana’s Internet connected remote value platform
improves a utility’s ability to save time, money, and expense.
Industry analysts estimate that approximately five to ten percent
of water utility users don’t pay their bills, and that each time a
utility is forced to disconnect and then reconnect service,
significant labor and operational costs are incurred. Aquana’s
sensors and actuators enable utilities to disconnect and reconnect
services remotely from a secure central location.
The Aquana business division will reside in Geospace’s Adjacent
Markets segment. This segment generated a 10% increase in
year-over-year revenue for the six-month period ending March 31,
2021, despite the debilitating effects of the worldwide COVID-19
pandemic. Management believes that its technology focused
diversification strategy will continue to pay strong dividends.
Wheeler concluded, “I’d like to welcome the highly innovative
and talented Aquana personnel to our Geospace team. Through the
combination of our technologies, engineering, and core
manufacturing competencies, we look forward to forging a profitable
and successful enterprise as we continue to drive results for our
valued clients and trusted shareholders.”
About Geospace Technologies
Geospace principally designs and manufactures seismic
instruments and equipment. We market our seismic products to the
oil and gas industry to locate, characterize and monitor
hydrocarbon-producing reservoirs. We also market our seismic
products to other industries for vibration monitoring, border and
perimeter security and various geotechnical applications. We design
and manufacture other products of a non-seismic nature, including
water meter products, imaging equipment and offshore cables.
About Aquana
Aquana’s premier Internet of Things (IoT) platform offers
multifunctional, modular, and enterprise ready solutions serving
the rapidly growing water utility and property management markets.
The Company’s water management solutions deliver remote shut-off
valve control, remote AMI meter reading, as well as leak and burst
protection for multi-family properties, commercial buildings, and
utilities. Aquana combines connected smart valve hardware with
cloud-based software in a Software as a Service (SaaS) recurring
revenue model.
Forward Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements can be identified by
terminology such as “may”, “will”, “should”, “intend”, “expect”,
“plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”,
“predict”, “potential”, “continue”, “evaluating” or similar words.
Statements that contain these words should be read carefully
because they discuss our future expectations, contain projections
of our future results of operations or of our financial position or
state other forward-looking information. Examples of
forward-looking statements include, among others, statements that
we make regarding the success of our transaction with Aquana and
our diversification strategy. These forward-looking statements
reflect our current judgment about future events and trends based
on the information currently available to us. However, there will
likely be events in the future that we are not able to predict or
control. The factors listed under the caption “Risk Factors” in our
most recent Annual Report on Form 10-K which is on file with the
Securities and Exchange Commission, as well as other cautionary
language in such Annual Report, any subsequent Quarterly Report on
Form 10-Q, or in our other periodic reports, provide examples of
risks, uncertainties and events that may cause our actual results
to differ materially from the expectations we describe in our
forward-looking statements. Such examples include, but are not
limited to, the failure of the Aquana transaction and our
diversification strategy to yield positive operating results. The
occurrence of the events described in these risk factors and
elsewhere in our most recent Annual Report on Form 10-K or in our
other periodic reports could have a material adverse effect on our
business, results of operations and financial position, and actual
events and results of operations may vary materially from our
current expectations. We assume no obligation to revise or update
any forward-looking statement, whether written or oral, that we may
make from time to time, whether as a result of new information,
future developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210707005831/en/
Rick Wheeler President and CEO TEL: 713.986.4444 FAX:
713.986.4445
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