REG - Water Intelligence - Reacquisition of Central Texas Franchise

Water IntelligenceAnnouncement

12/05/2022 07:00

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RNS Number : 2396L  Water Intelligence PLC  12 May 2022

Water Intelligence plc

("Water Intelligence" or the "Group")

Reacquisition of Central Texas Franchise

Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or "Group"), a
leading multinational provider of precision, minimally-invasive leak detection
and remediation solutions for both potable and non-potable water is pleased to
advance its 2022 growth plan with the reacquisition of its franchise in
central Texas ("Acquisition") within the Group's American Leak Detection
("ALD") subsidiary. The Acquisition builds upon the acquisition of its large
Fort Worth, Texas franchise in January and the greenfield launch of a new
corporate location in Wichita Falls in March.

Growth Strategy. The central Texas franchise includes the cities of Abilene,
Lubbock and Midland which are west of Fort Worth and Wichita Falls.
Especially with the implementation of Salesforce and its related applications
in the Fort Worth office, which makes scheduling and dispatch more efficient,
the Group expects to further develop Fort Worth/Dallas as a regional hub and
achieve greater scalability by integrating operations from Fort Worth west to
Midland.  The Group is executing this regional hub model across the United
States with its more than 150 corporate and franchise locations.

Terms.  The purchase price of $0.75 million in cash includes all assets
required to conduct operations, including trucks and equipment. The purchase
price is based on the franchise's 2021 Statement of Income of $0.65 million in
revenue and $0.21 million in profit before tax. The transaction is accretive
to Water Intelligence shareholders.

Executive Chairman, Dr. Patrick DeSouza commented: "I am very pleased with
today's reacquisition which further advances our 2022 growth plan with
confidence.  Given strong market demand for our water and waste water
solutions, we look to continue accelerating our growth strategy.  With our
on-going automation of business operations, we see opportunities for
significant scalability throughout Texas, which itself is growing rapidly, and
across the United States"

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

Enquiries:

 Water Intelligence plc
 Patrick DeSouza, Executive Chairman               Tel: +1 203 654 5426
 RBC Capital Markets - Joint Broker                Tel: +44 (0)20 7653 4000
 Jill Li

 Daniel Saveski

 WH Ireland Limited - NOMAD & Joint Broker         Tel: +44 (0)20 7220 1666
 Chris Hardie
 Ben Good
                                                                   Tel:  +44 (0)20 3903 7715

 Dowgate Capital Ltd - Joint Broker

Stephen Norcross

 

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