Canadian smart building specialist Kontrol Technologies announced the completion of the acquisition of Global HVAC & Automation.
Kontrol specializes in real-time monitoring, asset optimization, data analytics, and enhanced facility management.
“We are excited to complete such a significant acquisition, which adds substantial new revenues and the largest consolidated revenue order book in our operating history,” said Paul Ghezzi, CEO of Kontrol. “This acquisition brings with it an impressive roster of new customers and technical capabilities, which we believe should create many potential lucrative cross-selling opportunities. As such, the acquisition of Global has the potential to drive significant growth and scale for Kontrol over the long term. With a consolidated revenue order book of $155 million, we are well poised for our next stage of growth.”
Kontrol anticipates full year revenue for 2021 will be in the $38 million range up from $13 million in 2020. For 2022, the company anticipates revenues in the range of $65 to $70 million.
Kontrol noted that heating, ventilation, and air conditioning (HVAC) systems can account for up to 70% of overall energy consumption in commercial buildings. Efficient and smart HVAC systems can drive important intelligence and improvements to make buildings more sustainable, profitable and healthier, the firm added.
Kontrol already provides its customers with a suite of Internet of Things (IoT) and cloud-based technology to optimize heating, cooling, and ventilation, as well as overall energy management and emission reduction.
The firm said that Global’s service offering complements Kontrol’s existing product portfolio, adding that the combination of the two is expected to create significant growth opportunities over the coming years.
Global has traditionally focused on larger projects, with one-time project revenues. A small percentage of its overall business is in recurring service and asset maintenance. Global will operate as a subsidiary of Kontrol with its current management team in place. Kontrol said it will seek to grow Global’s recurring revenues through vertical integration with its current software and ongoing service agreements.
Kontrol’s SmartSite platform integrates into building automation systems and provides a data analysis, reporting and smart learning algorithms to drive improvements in overall energy management and sustainability. Kontrol will integrate its facility management with the Global project platform to drive software revenues.
Kontrol also operates a facility management platform with ongoing and recurring revenues to manage energy assets and optimize them for performance. Kontrol said it aims to integrate its facility management with the Global project platform to drive service revenues.