Tantalus Acquires Congruitive to Accelerate the Digitization of the Electric Grid

Tantalus Acquires Congruitive to Accelerate the Digitization of the Electric Grid

Acquisition Will Help Utilities Prepare for the Impact of EVs and DERs

Smart grid technology leader Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company") today announced its acquisition of DLC Systems, Inc. dba Congruitive ("Congruitive") for a purchase price that includes US$8 million of closing consideration and up to US$5 million through a two-year earn-out. Congruitive will become a wholly owned subsidiary of Tantalus' US operating subsidiary.

Congruitive is leveraging multi-decade relationships with utilities through its substation automation expertise to deliver its signature software solution, Congruence.IQ™ ("C.IQ™"), which is a software platform that enables the interoperability of a wide range of devices through an emerging Institute of Electrical and Electronics Engineers ("IEEE") standard. By deploying C.IQ, a utility's smart grid deployment can operate as one intelligent, interoperable system, with the necessary scalability and flexibility as more electric vehicles ("EVs") and distributed energy resources ("DERs") are deployed at the edge of the grid. Congruitive is currently selling its C.IQ software to investor-owned utilities ("IOUs"), smart meter vendors and renewable power integrators.

"This acquisition serves as a further demonstration of Tantalus' purpose-driven mission to help utilities become sustainable from an enhanced financial, operational and environmental perspective," said Tantalus President and CEO, Peter Londa. "Having C.IQ as part of our solution allows us to help public power and electric cooperative utilities prepare for the impact that an increasing number of EVs and roof-top solar panels will have on the reliability of their distribution grids. We are delighted to announce the closing of this acquisition today, and we welcome Congruitive's employees, customers and partners to Tantalus."

At a recent Tantalus users conference, representatives from over 100 public power and electric cooperative utilities reiterated they are under increasing pressure to maintain operations despite disruptions from extreme weather, mandates to decarbonize, and the meteoric rise of EVs, solar panels and other DERs. Despite these disruptions, utilities are called upon daily to deliver safe, reliable and affordable services, while relying on legacy distribution grids that are challenged to respond to changing dynamics. Tantalus' smart-grid platform, TUNet®, helps utilities address these challenges by enabling them to monitor, control and respond to events anywhere and at any time across their distribution networks. With the addition of Congruitive and C.IQ, Tantalus will be able to help utilities leverage data through a growing suite of software capabilities to improve the services delivered to their communities.

"This acquisition is an important milestone and will provide value to our customer base," said Congruitive CEO, Kenneth Munson. "As utilities digitize their distribution grids, providing interoperability of data from disparate devices is critical to maintaining reliable and expanded services. Tantalus' ability to access granular data and deliver next-generation analytics through TUNet coupled with our ability to transport and integrate data from distribution automation equipment and DERs will lead to an even greater range of solutions for the utility industry, and as part of Tantalus, C.IQ will have greater reach into the public power and electric cooperative utility segment."

Tantalus agreed to acquire 100% of the issued and outstanding common shares of Congruitive pursuant to the terms of a stock purchase agreement. The purchase price was comprised of US$8 million of closing consideration in the form of approximately US$3.5 million in cash, 869,565 common shares of Tantalus based on a share price of CDN$1.76 (US$1.38) (calculated with reference to the volume weighted average trading price of Tantalus' common shares on the TSX over the last five trading days ended January 28, 2022 and exchange rates over the same period) and the assumption of certain debt on Congruitive's balance sheet at the time of closing. In addition, Tantalus agreed to include an earn-out provision of up to an additional US$5 million of consideration in the form of cash and common shares of Tantalus. The earn-out is tied to Congruitive increasing its annual revenue up to US$6.9 million by 2023. Congruitive delivered approximately US$2.5 million in revenue from software and services in 2021. As part of the terms of the transaction, Congruitive shareholders agreed to a one-year lock-up for the common shares being issued by Tantalus at closing. Its current management team will remain in place and report into Tantalus' President and CEO.

"We are excited to become part of the Tantalus family," said Congruitive Founder and Chairman Douglass Campbell. "Congruitive has always been a company that cares deeply about the success of our customers. Tantalus is the right fit culturally, technologically, and operationally. Together, we look forward to helping utilities everywhere take full advantage of the data available to them, digitize the electric grid and better serve their communities in a rapidly changing world."

About Tantalus Systems Holding Inc. (TSX: GRID)
Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of public power and electric cooperative utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at www.tantalus.com.

About DLC Systems d/b/a Congruitive
For over 30 years, Congruitive has developed advanced technology solutions that give utilities and renewable energy producers the power to manage and control electricity at every point on the grid. Our open enterprise solutions serve as a gateway to acquire and distribute complex operational data across the grid, from substations and control centers to distributed energy resources and electric vehicles. With its powerful and flexible communications processing engine, our Congruence.IQ software provides grid operators with the information they need to keep electricity flowing effectively, efficiently, and safely. To learn more visit www.congruitive.com.

Forward-Looking Statements:
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes without limitation, statements with respect to: the earn-out consideration; the final approval of the listing of the common shares of the Company by the TSX; expected impacts of the acquisition of Congruitive, the expected capabilities, performance and prospects of TUNet™ and C.IQ, planned changes in Tantalus' business, including the addition of new lines of business; future acquisitions; the outlook of the Company's and Congruitive's business and the industry in which each operates its business; the competitive environment in which the Company and Congruitive operate; critical accounting estimates; and management's assessment of future plans and operations. Actual events or results may differ materially.

In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: that financial markets will not in the long term be adversely impacted by the COVID-19 pandemic and the absence of material adverse changes in our business, our industry or the global economy. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein.

Known risk factors include, among others: the impacts of COVID-19 are unpredictable and could have significant impacts on Tantalus' financial performance; sales cycles to Tantalus' customers can be lengthy and unpredictable and require significant employee time with no assurances that a prospective customer will select Tantalus' products and services; Tantalus' financial and operational performance significantly depends on its ability to attract and retain customers and its ability to develop new products and to enhance and sustain the quality of existing products to retain such customers; Tantalus depends on a limited number of key suppliers and if such suppliers fail to provide Tantalus with sufficient quantities of components at acceptable levels of quality and at anticipated costs, Tantalus' revenue and operating results could be materially and adversely affected; Tantalus has a prior history of operating losses and Tantalus may not sustain profitability on a quarterly or annual basis; Tantalus' quarterly results are inherently unpredictable and subject to substantial fluctuations; Tantalus' success depends in part on Tantalus' ability to integrate its technology into devices and its relationship with device manufacturers; Tantalus' marketing efforts depend significantly on Tantalus' ability to receive positive references from Tantalus' existing customers; the markets for Tantalus' products and services, smart grid, smart city, and broader IoT technology in general, are still developing - if the markets develop less extensively or more slowly than Tantalus expects, Tantalus' business could be harmed; Tantalus operates in a highly competitive industry and Tantalus competes against many companies with substantially greater financial and other resources, and Tantalus' market share and results of operations may be reduced if Tantalus is unable to respond to competitors effectively; Tantalus is dependent on the utility industry, which has experienced volatility in capital spending - this volatility could cause Tantalus' results of operations to vary significantly from period to period; Tantalus' reliance on certain infrastructure and information technology systems make it vulnerable to the potential adverse effects of cyber-attacks and other breaches; if Tantalus' products contain defects or otherwise fail to perform as expected, Tantalus could be liable for damages and incur unanticipated warranty, recall and other related expenses, Tantalus' reputation could be damaged, Tantalus could lose market share and, as a result, Tantalus' financial condition or results of operations could suffer; the nature of Tantalus' business exposes it to the unpredictable risks of contractual disputes; the loss of key employees and the inability to attract and retain qualified personnel could harm Tantalus' business; Tantalus' business is exposed to potential risks associated with international sales and operations; foreign exchange rate fluctuations could harm Tantalus' results or operations; Tantalus and its customers operate in a highly regulated business environment and changes in regulation could impose costs on Tantalus or make Tantalus' products less economical; Tantalus' inability to acquire and integrate other businesses, products or technologies could seriously harm Tantalus' competitive position; intellectual property infringement claims could be costly and time-consuming to prosecute or defend; substantially all of Tantalus' current products depend on the availability and are subject to the regulation of radio spectrum in the United States and abroad; and interruptions or delays in services from Tantalus' third-party data center facilities, or problems with the third-party hardware or software that Tantalus employs, could impair the delivery of its services and harm Tantalus' business.

A more complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading "Risk Factors" in Tantalus' Annual Information Form dated May 18, 2021, as well as Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.

Contact Tantalus:
Jacquie Hudson
Marketing Communications Manager
Tantalus Systems Inc.
613-552-4244 | jhudson@tantalus.com

Investor Relations:
Linda Armstrong
Investor Relations
647-456-9223 | larmstrong@tantalus.com

Website: www.tantalus.com
LinkedIn: LinkedIn/company/tantalus
Twitter: @TantalusCorp

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112289

News Provided by Newsfile via QuoteMedia

GRID:CA
The Conversation (0)
Tantalus Delivers 3 Millionth Intelligent Endpoint to Public Power and Electric Cooperative Utilities

Tantalus Delivers 3 Millionth Intelligent Endpoint to Public Power and Electric Cooperative Utilities

Connected Devices Deliver Next-Generation Smart Grid Solutions and Data-Driven Applications to Help Utilities Modernize, Digitize and Improve Resiliency

Tantalus Systems (TSX: GRID), a smart grid technology company focused on helping build the utility of the future, is pleased to announce that it has now deployed more than 3 million smart grid-enabled connected meters with its integrated TRUEdge® computing modules to public power and electric cooperative utilities. This milestone is significant in the evolution of modernizing distribution grids of community-oriented utilities. These connected meters with TRUEdge computing modules serve as the backbone of a digital network that improves a utility's resiliency in the face of massive economic, environmental and regulatory change.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Tantalus Systems Holding Inc. Reports Financial Results for Q2 of 2022

Tantalus Systems Holding Inc. Reports Financial Results for Q2 of 2022

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce its financial and operating results for the second quarter ended June 30, 2022.

"We are pleased with the progress our team continues to make in 2022 despite operating in a challenging business environment. In addition to delivering revenue growth of approximately 13% in the quarter as compared to last year, we also had 5 new utilities join our user community during Q2," stated Peter Londa, President & CEO of Tantalus. "In addition to expanding our user community, we delivered a new milestone for converted orders from our sales pipeline for the first six months of a calendar year at $24.7 million, reflecting 44% growth year-over-year. We also set a new high-water mark for our Annualized Recurring Revenue1 which now stands at $9.0 million."

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Tantalus to Report Second Quarter Financial Results on August 9, 2022

Tantalus to Report Second Quarter Financial Results on August 9, 2022

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce that the Company will release its second quarter 2022 financial results on Tuesday, August 9, 2022, after the market closes. The Company will hold a conference call and webcast to discuss the financial results on Wednesday, August 10, 2022, at 11:00 am Eastern Time.

Conference Call

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Tantalus Systems Publishes Inaugural ESG Report

Tantalus Systems Publishes Inaugural ESG Report

Sets goals and commitments to key initiatives across the organization

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities, is pleased to announce the publication of its inaugural Environment, Social and Governance (ESG) Report. The report is published in alignment with the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD), both of which are widely recognized global sustainability reporting frameworks. The inaugural ESG Report covers the period ending December 31, 2021, and highlights the ways in which Tantalus is working to create a sustainable and equitable future internally as well as for its growing user community of utilities.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Tantalus Systems Announces Voting Results for Annual General and Special Meeting

Tantalus Systems Announces Voting Results for Annual General and Special Meeting

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, today announced the voting results of the Company's annual general and special meeting of shareholders held on June 10, 2022 (the "Meeting").

Election of Directors

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Tesla logo and cars in parking lot.

Tech 5: Tesla Shares Up on Full Self-driving News, Qualcomm Eyes Intel’s Chip Business

Uncertainty has continued in September after August left investors scratching their heads.

In the tech sector, Bitcoin and Ether prices declined this week on waning investor interest, while Broadcom's (NASDAQ:AVGO) latest quarterly report contributed to cautious sentiment among market participants.

Tesla (NASDAQ:TSLA) also made headlines this week, teasing the release of its full self-driving technology in select markets, while struggling Intel (NASDAQ:INTC) could have a buyer for its design business.

Keep reading...Show less
Carbonxt Group

Carbonxt Group Limited – FY24 Results Announcement

Carbonxt Group Ltd (ASX:CG1) (‘‘Carbonxt” or “the Company”) has released its Appendix 4E Preliminary Final Report.
Keep reading...Show less
Donald Trump in front of American flag.

Trump Presidency: A Threat to EV Growth and Battery Supply Chain Expansion?

Electric vehicles (EVs) are key to cutting greenhouse gas emissions and fighting climate change, and the Biden administration has implemented subsidies and tax incentives to foster US and North American supply chains.

Nearly US$1 trillion is flowing into various initiatives via the Bipartisan Infrastructure Deal, CHIPS and Science Act and Inflation Reduction Act (IRA). The aim is to boost economic and tech development while supporting clean energy.

More specifically, the Bipartisan Infrastructure Deal invests in upgrading US infrastructure, including roads, bridges, public transit, and broadband internet. Meanwhile, the CHIPS and Science Act promotes US semiconductor manufacturing and research to reduce reliance on foreign suppliers, and the Inflation Reduction Act focuses on reducing the deficit, lowering drug costs and investing in clean energy to combat climate change.

Keep reading...Show less
Carbonxt Group

US$159,000 Grant Funding for Water Remediation Project

United States focused Cleantech company Carbonxt Group Ltd (ASX:CG1) (‘‘Carbonxt” or “the Company”) is pleased to confirm that it has been awarded a US$159,000 (~A$240,000) research grant by the Florida state government to advance a groundbreaking water remediation study aimed at combatting the negative impacts of algae growth on coastal communities.

Keep reading...Show less
Hands holding small globe with tree growing on top.

AU$80 Million Investment from BHP, Rio Tinto and Qantas Fuels Australian Carbon Credit Fund

BHP (ASX:BHP,NYSE:BHP,LSE:BHP), Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Qantas Airways (ASX:QAN,OTC Pink:QUBSF) have committed a combined AU$80 million as early investors in an Australian carbon credit fund.

The fund, which is managed by Silva Capital — a joint venture between Roc Partners and C6 Investment Management — aims to support the country's carbon-reduction efforts by investing in reforestation projects.

In total, Silva Capital is looking to raise AU$250 million for the fund, with the money to be used to generate and manage Australian Carbon Credit Units (ACCUs). ACCUs are issued by the Australian government's Emissions Reduction Fund, a US$3 billion initiative aimed at reducing the nation's carbon emissions by 43 percent from 2005 levels by 2030.

Keep reading...Show less
Field with windmills overlayed by Canadian flag.

5 Best-performing Canadian Cleantech Stocks of 2024

The global transition to a green economy has been a boon for the cleantech market — it's helping investment in renewable energy and clean technology continue to grow, allowing the sector to keep building momentum.

Analysts see a few key trends dominating the cleantech sector worldwide, including solar and wind energy, agricultural technology, electric vehicles (EVs), EV infrastructure and clean energy commercial long-haul transportation solutions.

With 2024 more than half way over, here’s a look at the best-performing Canadian cleantech stocks on the TSX and TSXV year-to-date; CSE companies were considered, but none made the list at this time. Data for this article was gathered on July 31, 2024, using TradingView’s stock screener. Only companies with market capitalizations greater than C$50 million are included.

Keep reading...Show less

Latest Press Releases

Related News

×