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Business Management Review | Wednesday, August 31, 2022
Volatus Aerospace has entered the British market with the purchase of iRed® Remote Sensing, a leading thermographic survey company.
FREMONT, CA: “We began our expansion in the UK earlier this year with the addition of a seasoned business development executive, Steve Emerson, to build our presence and provide regional leadership. iRed is an established brand with a solid base of resources to grow that will enhance our global capabilities in thermography,” says Glen Lynch, CEO of Volatus Aerospace. Volatus Aerospace Corp signed a definitive deal on October 17, 2022, to buy iRed Limited, a drone services and training firm in Emsworth, England (iRed). This acquisition lays the groundwork for Volatus's continued regional expansion and bolsters the company's overall thermographic capabilities.
“Thermography is in high demand in verticals like public safety, forestry, infrastructure, and agriculture. These use cases are only growing as drone capabilities mature and there is higher demand to reduce greenhouse gas emissions through early detection via thermographic imaging,” adds Lynch.
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“I’m very proud of what iRed has accomplished over the past 20 years,” says Ray Faulkner, President of iRed. “Joining Volatus will provide us with the resources necessary to take our company to the next level. We look forward to expanding our product offering, growing our service business, and pushing our training programs to the larger global market. Volatus Aerospace shares our commitment to sustainability and reducing our carbon footprint, and we look forward to what we can accomplish together.”
iRed was founded in 2001 as an organization specializing in infrared technologies, training, and services. While infrared training and inspection remain the company's key competencies, the advent of drones boosted opportunities for thermography, leading to the company's development into a variety of drone-related services, equipment sales, and a broader customer base. iRed aims for $1 million in revenue and a 7 percent EBITDA margin by the end of the year.
Volatus will invest £100,000 in iRed in exchange for freshly issued shares (treasury shares) representing a 51percent of all existing shares. iRed will use the money for ongoing expansion operations. The deal will close on October 31, pending the board of directors, regulatory, and TSX clearances. Volatus will assume all long-term debt obligations totaling £221K, and the seller will be subject to operational and financial metrics as defined in the definitive agreement. At the one-year anniversary, the iRed investor(s) will have the option to sell the remaining 49 percent for up to £125K in exchange for Volatus shares at a valuation of $0.65 per share or the 12-month anniversary price, whichever is lower.
This news signifies another geographical expansion for Volatus, following the June announcement of their joint venture in Latin America and their dedication to providing green solutions to their clients.
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