Volatus Aerospace has announced that it has signed an arm’s length definitive agreement dated Oct 12, 2022, to acquire Alberta-based Synergy Aviation Ltd. This acquisition the company says will solidify Volatus’ position in Western Canada providing privileged access to much of the oil and gas industry. Synergy’s leadership in the sector combined with Volatus’ drone technology solutions will position the Company with a strong competitive advantage to introduce innovative, efficient, green, remotely operated drone solutions to fulfil regulatory and asset monitoring requirements.
The company reports that “Synergy Aviation, founded in Alberta in 2014, is an industry leader in aerial surveillance, pipeline integrity monitoring, and specialized geomatics, patrolling and inspecting more than 500,000 KM of pipeline right of way stretching from the coast of British Columbia to the Manitoba/US border. The company provides Canada’s largest oil & gas producers and pipeline operators with uninterrupted, consistent and highly detailed right-of-way integrity data.”
“Pipeline inspection, much like other long linear inspection requirements, has traditionally been completed using crewed helicopters and small fixed wing aircraft,” said Glen Lynch, CEO of Volatus Aerospace. “There are nearly 5 million kilometers of oil & gas pipeline in North America requiring annual inspections and, in many cases, weekly patrols to meet regulatory and asset management requirements,” said Todd Tkach, President of Synergy Aviation. “Becoming part of Volatus gives us the added geomatics capabilities, market reach, and the opportunity to disrupt traditional methods in this sector.”
Volatus also report that “Synergy recorded unaudited revenues of $7 million with a 14% EBITDA (Earnings before Interest, tax, depreciation, and amortization) during the first nine months of 2022 and is targeting year end revenues of $9 million. Under the terms of the agreement, Volatus will make an equity investment of $2.29 million in Synergy Aviation over the course of 10 months from closing in exchange for newly issued shares that will represent 51% of all outstanding shares. The investment will be used by Synergy for ongoing expansion activities. The transaction is scheduled to close on October 31st conditional on satisfactory completion of due diligence, approval of the respective Board of Directors, and regulatory approval by the TSX Venture Exchange. Subject to operational and financial metric as defined in the definitive agreement, the Synergy investors will have an option, expiring in December 2024, to sell the remaining 49% equity to Volatus at the same valuation at Closing in exchange of Volatus shares based on 30 days VWAP (volume weighted average price) on date of Closing.”
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