NameSilo Technologies announced it has entered into a definitive share purchase agreement to acquire Reach Systems, a Canada-based engineering and manufacturing company that designs and assembles remote inspection equipment, cable and tether management systems, and underwater and subsea camera and winch solutions.
NameSilo said the deal is intended to expand its exposure to robotics and autonomous platforms used in industrial environments, including oil and gas, petrochemical, national defense, and subsea and marine markets. The company also positioned the acquisition as complementary to SewerVUE Technologies, which it described as a pioneer in large-diameter pipe inspection technologies, suggesting opportunities to combine offerings into vertically integrated, multi-sensor products and services for remote and challenging applications.
Under the agreement, NameSilo will acquire all issued and outstanding shares of Reach Systems for a total purchase price of $4.5 million. Consideration is structured as 1,939,168 common shares issued at $1.7335 per share for an implied value of $3,361,547, plus a cash payment of $978,699 and repayment of $159,753 in outstanding shareholder loans. NameSilo said the shares issued as consideration will be subject to a hold period of four months and one day from the date of issuance.
The company said the purchase price was determined through arm’s-length negotiations and that none of NameSilo’s insiders have a relationship with Reach Systems’ insiders. Closing remains subject to customary closing conditions set out in the share purchase agreement.
NameSilo described itself as a capital allocator that invests in opportunities it believes are undervalued and have the potential for significant appreciation across both public and private markets, while excluding the resource and resource services sectors. It also operates NameSilo LLC, a low-cost domain name registration and management services provider, and said the registrar has approximately 6.1 million active domains under management across roughly 160 countries. SewerVUE Technologies, which NameSilo cited for expected product and market synergies, provides multi-sensor inspection capabilities, including LiDAR, sonar, HD-CCTV, and pipe-penetrating radar, to support critical infrastructure assessment and maintenance.
KEY QUOTES
“Reach Systems brings significant robotics and autonomous platform exposure to a growing number of industrial applications in oil & gas, petrochemical, national defense, subsea and marine related markets. Reach Systems also offers immediate synergies to SewerVue, a pioneer in large-diameter pipe inspection technologies. The acquisition of Reach will allow us to offer best-in-class, vertically integrated multi-sensor products and services for remote and challenging applications. We look forward to working with the accomplished team at Reach Systems and helping to bring their world-class products to market.”
Paul Andreola, Chief Executive Officer, NameSilo Technologies Corp.
