TORONTO - ZenaTech, Inc. (NASDAQ:ZENA), a company specializing in AI drone and SaaS solutions, has announced its intent to acquire ZooOffice Inc., the parent company of software firms Jadian and DeskFlex. This strategic move is aimed at integrating compliance and inspection software, as well as scheduling and mapping software, into ZenaTech's ZenaDrone AI drone solutions.
The acquisition is poised to bolster ZenaTech's SaaS offerings and customer base, with anticipated growth in recurring revenue, particularly within the government sector. The completion of this transaction is contingent upon shareholder and regulatory approvals.
ZenaTech CEO Shaun Passley, Ph.D., explained that incorporating Jadian's compliance software with ZenaDrone hardware and sensors will assist farmers in managing regulatory and environmental requirements. Similarly, DeskFlex's room booking software is expected to enhance property management solutions by optimizing office space utilization.
Jadian offers solutions for managing compliance, audits, and risk management across various sectors, including government and health facilities. DeskFlex, on the other hand, specializes in AI-driven room booking software that facilitates dynamic workspace allocation in office environments.
ZenaDrone, a subsidiary of ZenaTech, focuses on the development of autonomous business drone solutions that incorporate machine learning, AI, and other technological advancements. The company's drones are utilized for surveillance, monitoring, inspection, and automation in sectors such as agriculture, defense, and logistics.
ZenaTech, with a portfolio of over 100 enterprise software customers, operates across North America, Europe, and the UAE, and is expanding its global partner network.
This press release contains forward-looking statements as defined by U.S. federal securities laws, and such statements are based on management's current expectations and projections. However, these forward-looking statements are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those projected.
The information in this article is based on a press release statement from ZenaTech, Inc.
In other recent news, ZenaTech Inc. has made considerable strides in the drone technology sector. The company has launched the ZenaDrone 1000 and the ZenaDrone IQ Nano, two advanced drones designed for various applications ranging from agricultural use to indoor logistics. ZenaTech's subsidiary, ZenaDrone, has also begun commercial operations in the United States following approval from the Federal Aviation Authority (FAA).
The FAA exemption has opened doors for ZenaTech to conduct live testing with U.S. partners and potential customers. This development is anticipated to refine the company's drone solutions, distribution, and manufacturing plans within the country. ZenaTech's partnership with Night Sun, a Native American Corporation, is also set to benefit from this exemption, with plans to manufacture and sell drones for use by Native American tribes.
These are recent developments in ZenaTech's ongoing growth strategy. The company, which serves over 100 enterprise software customers across various sectors, aims to leverage its expertise in software development and drone manufacturing to enhance operational efficiencies and cost savings for its clients. The company's CEO, Dr. Shaun Passley, has expressed optimism about these new commercial services and the potential for regulatory approvals in other countries.
InvestingPro Insights
As ZenaTech (NASDAQ:ZENA) embarks on its acquisition of ZooOffice Inc., investors should be aware of some critical financial metrics and market trends. According to InvestingPro data, ZenaTech's market capitalization stands at $33.06 million, reflecting its current position in the AI drone and SaaS solutions market.
The company's revenue for the last twelve months as of Q2 2024 was $1.41 million, with a concerning revenue growth of -16.14% over the same period. This decline in revenue aligns with an InvestingPro Tip indicating that the stock has fared poorly over the last month, with a significant 1-month price total return of -78.3%.
Despite these challenges, ZenaTech maintains a gross profit margin of 100% and an operating income margin of 14.07% for the last twelve months as of Q2 2024. These figures suggest that while the company is facing top-line pressures, it has managed to maintain efficiency in its operations.
An InvestingPro Tip highlights that ZenaTech is trading at high EBIT and EBITDA valuation multiples. This could indicate that investors are pricing in expectations of future growth, possibly factoring in the potential benefits of the ZooOffice acquisition and the expansion of ZenaTech's SaaS offerings.
It's worth noting that ZenaTech does not pay a dividend to shareholders, which is common for growth-oriented technology companies reinvesting in their business. The upcoming earnings date is set for November 20, 2024, which will be a crucial event for investors to assess the company's progress and the potential impact of its acquisition strategy.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for ZenaTech, providing a deeper understanding of the company's financial health and market position.
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