Strategic Transaction Will Expand Companies’ Reach and Create Opportunity for Global Leadership in Intelligent Automation, Occupancy-based Energy Management and Iot Technology through a Collective World-wide Presence
Pordenone, 9th of August – Telkonet, Inc. (OTCQB: TKOI) (“Telkonet”) and VDA Group S.p.A. (“VDA”) today announced that they have entered into a Stock Purchase Agreement under which VDA will contribute $5 million to Telkonet (the “Financing”) in exchange for a majority of shares of common stock of Telkonet and a warrant to purchase additional shares of common stock. Under the terms of the agreement, the majority of the existing Telkonet board of directors will resign and the resulting vacancies will be filled by individuals designated by VDA to participate in the leadership of the new joint enterprise.
The Financing will allow Telkonet and VDA to create a strategic dynamic that will allow each company to enhance their market position and will provide both companies with an opportunity to leverage the respective strengths of their businesses in the areas of Intelligent Automation, occupancy-based energy management and Iot technology services (“IOT”) for global markets in specific sectors, including hospitality, military housing, student housing, multi-family housing and assisted living. The companies’ respective teams, skills and resources will allow Telkonet and VDA to act on opportunities offered in the new era of IOT and synergies between the two companies will offer customers additional products, technologies and excellent service as it positions itself to take advantage of the technological transformation taking place in the targeted industries.
“This transaction represents an excellent opportunity for Telkonet to increase investment in our targeted industries and will allow us to reach the optimum size for competing in an increasingly attractive and challenging industry“, said Jason Tienor, CEO of Telkonet Inc. “I am fully convinced that, thanks to their immense talent and collaborative approach, our teams will be able to maximize performance with energy and enthusiasm“.
“This transaction will allow both companies with recognized brands as well as passionate and competent teams to take advantage of each other’s strengths. We both look at the challenges of tomorrow as an opportunity to be seized because they represent a way to grow and improve”, said Piercarlo Gramaglia, Chief Executive Officer of VDA. “We want to strengthen and extend our position in the field of Smart Automation, because we believe that there is no future without a sustainable approach”.
The Financing is subject to customary closing conditions including, among others, approvals of stockholders of Telkonet.
The transaction is expected to close in the fourth quarter of 2021.