Knightscope announces acquisition of CASE Emergency Systems

Knightscope, Inc., a developer of autonomous security robots announced the signing of a definitive agreement to acquire CASE Emergency Systems (“CASE”) and to close on the transaction in October 2022.

The acquisition is planned to boost the company’s revenues while increasing its positive impact on the safety of communities nationwide.

Acquisition of CASE

CASE is a pioneer 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 a physical presence to Knightscope with over 7,000 devices currently deployed across the United States, 9 production and logistics facilities spread throughout California, Texas, and New York, and a seasoned team located across 4 states.

Autonomous security robot portfolio

The acquisition is planned to contribute to Knightscope’s sales strategy, given CASE’s relationships with numerous key clients

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. Federal Government.

These relationships will complement 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.

Transaction details

The CASE transaction is structured as an asset purchase. In connection with the acquisition, Knightscope entered into 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 $5.00 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 Sr. Vice President of Public Safety Infrastructure Development.

Upgrading public safety

We welcome the CASE team and together we will accelerate our journey to a safer, brighter future"

“In order to achieve our long-term mission of making the United States of America 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 nationwide overhaul and expansion effort, working closely with our client's 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.

Integrating technologies

“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 of CASE Emergency Systems.