13th Jun 2019 14:05
(Alliance News) - Water Intelligence PLC on Thursday said it has reacquired its franchise in Tucson, Arizona, for USD750,000.
The water leak detection company hopes the Tucson franchise reacquisition, by creating a regional company office, will help grow various neighbouring franchise locations and enhance royalty income. It will initially pay USD700,000 in cash over a five year period and an additional USD50,000 should the territory achieve USD210,000 net income for 2019.
Water Intelligence will retain the current team at the Tucson branch and expects the location to be one of the launch sites for its Orca product. Orca is the company's new municipal sewer product.
In 2018, the Tucson branch generated net income of USD150,000 and revenue of USD780,000.
The deal is expected to be immediately accretive to earnings and consideration will be made from existing company cash.
Shares in Water Intelligence were trading 5.7% higher at 341.00 pence each on Thursday afternoon.
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