Knightscope to Acquire Public Safety Provider CASE Emergency Systems

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CASE is a provider of blue light emergency telephones and wireless emergency communication technology, providing Knightscope with strategic entry into a national market.

MOUNTAIN VIEW, Calif.—Knightscope (Nasdaq: KSCP), a developer of advanced physical security technologies using fully autonomous robots, announces the signing of a definitive agreement to acquire CASE Emergency Systems and close the transaction in October.

The acquisition is expected to increase the company’s revenue while increasing its positive impact on community safety nationwide, according to the announcement.

CASE said it was a leader in blue light emergency telephones and an innovator in next-generation wireless emergency communication technology, providing Knightscope with strategic entry into a national market.

Audited full-year results reflect CASE generated more than $5.4 million in profitable revenue in 2021. The accretive transaction provides a significant increase in Knightscope’s physical presence with more than 7,000 devices currently deployed in the States United States, nine production and logistics facilities spread across California, Texas and New Zealand. York, and a seasoned team spread across four states, according to the company.

Knightscope says the acquisition is expected to help its sales strategy, given CASE’s relationships with many key customers, including major airports, major law enforcement agencies, universities, municipalities, railroads, healthcare, parks, and the US federal government. These relationships will complement and strengthen Knightscope’s growing autonomous security robot business with a comprehensive product portfolio and expanded physical footprint.

“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 this by leveraging our current and future technologies in a major nationwide redesign and expansion effort, working closely with our customers – building on this that CASE has built. We welcome the CASE team to the Knightscope family and together we will accelerate our journey towards a safer and brighter future through innovative technologies and comprehensive public safety solutions,” said William Santana Li, President -CEO of Knightscope, Inc.

Knightscope’s management team said it intends to grow the business organically and expand its core solutions portfolio through future and opportunistic acquisitions based on revenue, flow available cash, technology, talent and facilities of a target.

As part of the transaction, Sebastian Gutierrez, Founder, President and CEO of CASE, joins Knightscope as Senior Vice President of Public Safety Infrastructure Development.

“CASE is thrilled to partner with Knightscope, and we are seeing many synergies, from revenue generation to new technology development and economies of scale. We look forward to bringing our expertise in public safety, wireless communications, solar energy and operations to the service of our shared mission,” adds Gutierrez.

The CASE transaction is structured as an asset purchase. In connection with the acquisition, Knightscope entered into a convertible note offering with an accredited investor, generating cash proceeds to fund the majority of the acquisition, these notes having an initial conversion price of $5.00 per share , subject to adjustment in the event of certain dilutive issues and other events.

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