Knightscope to Acquire Public Safety Provider CASE Emergency Systems
CASE is a provider of blue light emergency phones and wireless emergency communications technology, providing Knightscope with a strategic entry into a nationwide market.
MOUNTAIN VIEW, Calif. — Knightscope (Nasdaq: KSCP), a developer of advanced physical security technologies utilizing fully autonomous robots, announces the signing of a definitive agreement to acquire CASE Emergency Systems and to close on the transaction during October.
The acquisition is planned to boost the company’s revenues while increasing its positive impact on the safety of communities nationwide, according to the announcement.
CASE said to be a leader in blue light emergency phones and an innovator in next generation wireless emergency communications technology, providing Knightscope with a strategic entry into a nationwide market.
Audited full year results reflect CASE generated over $5.4 million of profitable revenue in 2021. The accretive transaction provides a significant increase in physical presence to Knightscope with over 7,000 devices currently deployed across the U.S., nine production and logistics facilities spread throughout California, Texas and New York, and a seasoned team located across four states, according to the company.
Knightscope states that the acquisition is planned to contribute to its sales strategy, given CASE’s relationships with numerous key clients, including major airports, top law enforcement agencies, universities, municipalities, rail, healthcare, parks, and the U.S. Federal Government. These relationships will compliment and strengthen Knightscope’s growing autonomous security robot business with a comprehensive product portfolio and broadened physical footprint.
“In order to achieve our long-term mission of making the United States of America the safest country in the world, we must drive a massive upgrade to our Nation’s public safety infrastructure. Knightscope intends to do that by leveraging our current and future technologies in a major overhaul and expansion effort nationwide working closely with our clients — building on what CASE has built. We welcome the CASE team to the Knightscope family, and together we will accelerate our journey to a safer, brighter future with innovative technologies and comprehensive public safety solutions,” says William Santana Li, chairman and chief executive officer of Knightscope, Inc.
The Knightscope management team says it intends to grow the company organically as well as add to its core solutions portfolio through future, opportunistic acquisitions based on a target’s revenue, free cash flow, technology, talent and facilities.
As part of the transaction, Sebastian Gutierrez, Founder, President and CEO of CASE, is joining Knightscope as senior VP of public safety infrastructure development.
“CASE is excited to team up with Knightscope, and we see a great deal of synergies from revenue generation to new technology development to economies-of-scale. We look forward to putting our expertise in public safety, wireless communications, solar, and operations to work in pursuit of our shared mission,” adds Gutierrez.
The CASE transaction is structured as an asset purchase. In connection with the acquisition, Knightscope entered into a convertible notes offering with an accredited investor, generating cash proceeds to fund a majority of the acquisition, with such notes having an initial conversion price of $5.00 per share, subject to adjustment in the case of certain dilutive issuances and other events.
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