Knightscope announces acquisition of CASE Emergency Systems

Oct. 11, 2022

Knightscope announced the signing of a definitive agreement to acquire CASE Emergency Systems and to close on the transaction during October. The acquisition is planned to boost the company’s revenues while increasing its positive impact on the safety of communities nationwide.

CASE is a leader in blue light emergency phones and an innovator in next generation wireless emergency communications technology, providing Knightscope with a strategic entry into a nationwide market. Audited full-year results reflect CASE generated over $5.4 million of profitable revenue in 2021.

The accretive transaction provides a significant increase in physical presence to Knightscope with over 7,000 devices currently deployed across the U.S., 9 production and logistics facilities spread throughout California, Texas and New York, and a seasoned team located across 4 states.

The acquisition is planned to contribute to Knightscope’s sales strategy, given CASE’s relationships with numerous key clients, including major airports, top law enforcement agencies, universities, municipalities, rail, healthcare, parks, and the U.S. government. These relationships will compliment and strengthen Knightscope’s growing autonomous security robot business with a comprehensive product portfolio and broadened physical footprint.

The Knightscope management team intends to grow the company organically as well as add to its core solutions portfolio through future, opportunistic acquisitions based on a target’s revenue, free cash flow, technology, talent, and facilities.

The CASE transaction is structured as an asset purchase. In connection with the acquisition, Knightscope entered into a convertible notes offering with an accredited investor, generating cash proceeds to fund a majority of the acquisition, with such notes having an initial conversion price of $5 per share, subject to adjustment in the case of certain dilutive issuances and other events. Further details regarding the acquisition and the convertible notes are included in a Current Report on Form 8-K filed with the SEC.

As part of the transaction, Sebastian E. Gutierrez, founder, president and CEO of CASE, is joining Knightscope as senior vice president of public safety infrastructure development.

“In order to achieve our long-term mission of making the U.S. the safest country in the world, we must drive a massive upgrade to our Nation’s public safety infrastructure. Knightscope intends to do that by leveraging our current and future technologies in a major overhaul and expansion effort nationwide working closely with our clients – building on what CASE has built. We welcome the CASE team to the Knightscope family, and together we will accelerate our journey to a safer, brighter future with innovative technologies and comprehensive public safety solutions,” said William Santana Li, chairman and chief executive officer of Knightscope, Inc.

“CASE is excited to team up with Knightscope, and we see a great deal of synergies from revenue generation to new technology development to economies-of-scale. We look forward to putting our expertise in public safety, wireless communications, solar, and operations to work in pursuit of our shared mission,” said Sebastian E Gutierrez, president and chief executive officer, CASE Emergency Systems.

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