mCloud Technologies Corp., a provider of asset management solutions combining IoT, cloud computing, artificial intelligence and analytics, signed a contract effective February 5, 2020 to acquire technologies from AirFusion, Inc., an AI visual inspection and monitoring technology provider based in Boston. Also being acquired from AirFusion are its subsidiary AirFusion GmbH, existing customer contacts, and technologies under development from its partner in Warsaw, Poland.
“AirFusion’s AI-derived results from wind turbine blade images are the best we have seen, reducing processing times by over 90% without compromising high accuracy,” said Dave Weinerth, mCloud’s President, Smart Energy. “This acquisition in combination with AssetCare gives mCloud a serious competitive edge over other wind blade inspection providers.”
“From AirFusion’s existing business alone, we expect to convert up to C$1.2 million in current engagements into full AssetCare recurring revenue customers this year,” Weinerth added.
“We are excited about extending AssetCare’s AI capabilities to drive new value for mCloud customers,” said Edward Mier-Jedrzejowicz, AirFusion’s CEO. “For wind farm operators, the combination of mCloud’s asset performance management with the AirFusion AI driven technologies that digest and analyze blade damage images, enables the optimal production of wind energy.”
AirFusion’s Newton Engine™, which uses patent-pending AI to identify and classify damage from images of wind turbine blades, will be embedded into the Company’s AssetCare platform. With early deployments having begun in 2019, full production is expected with AssetCare wind customers in Q1 2020. mCloud plans to integrate the Newton Engine to deliver new AssetCare solutions combining drone inspection and AI across all of mCloud’s lines of business, namely connected building and oil and gas customers, throughout 2020.
The Company advises that the full purchase consideration for the acquisition of AirFusion’s assets is not material to the Company. Due to the sensitive nature of the transaction, the full consideration is not disclosed. The shares being granted as part of the transaction are 200,000 at close and 200,000 within 12 months based on achievement of performance targets. The transaction is subject to the final approval of the TSX Venture Exchange.
