On Aug. 27, Kontrol Technologies Corp., a Canadian public company and provisioner of smart buildings and cities through its IoT, cloud and SaaS technologies, announced that it has established its first recurring revenues from its recent acquisition of Global HVAC and Automation, and the continued market expansion of the Kontrol BioCloud technology.
"Global has folded seamlessly into the Kontrol platform, having already started to grow our recurring revenue base in the several weeks since closing the acquisition," said Paul Ghezzi, CEO of Kontrol. "We are pleased to already see value generation from this business and look forward to delivering on further operational synergies. In addition, our substantial progress with the expansion of our innovative BioCloud technology continues to materialize in both the public and private sector."
The acquisition of Global provides an opportunity for Kontrol to continue to grow its recurring revenue platform, the company noted. Global has traditionally focused on large projects while outsourcing building service and software revenues to third parties. By bringing those projects in house through a vertical integration strategy, Kontrol said it seeks to benefit from additional margin growth.
The company issued a statement saying it is pleased that it established its first recurring service customer with the assistance of Global in a short period of time, and is quoting many other opportunities with Global. Service agreements can range from $125,000 to $150,000 per annum and span multi-years for Global's customer base, noted Kontrol. Kontrol notes that it typically operates its building service platform at approximately 60% gross margin.
Kontrol accommodates government agencies
Meanwhile, amid this post-acquistion growth surge, through its previously announced agreement with Marshall Communications, Kontrol revealed that it has responded to an enquiry for BioCloud from the HDIAC [Homeland Defense & Security Information Analysis Center]. The response includes updated independent lab testing for the BioCloud platform and research, as detailed in the next paragraph, and was managed by the Marshall Communications team.
In its updated lab testing and report, the company revealed that its Kontrol BioCloud recently completed 8 months of independent lab testing and research which is being shared with various levels of government and key distribution partners under NDA. A summary of the updated research will be published to Kontrol's website following legal and patent review. The independent lab testing was conducted at a leading Canadian University.
In keeping with this development, as previously announced, Kontrol noted that the BioCloud platform is currently testing at a Health Canada Level 4 lab, at the request of various government organizations, and that testing is ongoing.
The company emphasized that it "has no control over the timing of the testing. To be invited to test at a Level 4 lab is a great accomplishment, given BioCloud is not a medical device," added a statment, which concluded, "The company will provide the results when it receives them. As BioCloud is not a medical device, it does not require Health Canada or FDA approvals."
Learn more at at www.kontrolbiocloud.com.
