Internet of Things strikes joint venture deal with Chinese conglomerate New Hope

Internet of Things Inc (CVE:ITT) has inked a joint venture with Chinese conglomerate  New Hope Data Technology.

The joint venture will be focused on bringing global industrial IoT solutions to New Hope owned factories, as well as other manufacturing facilities across China and will be called New Hope IoT Intl Inc.

New Hope Data Technology Co Ltd is affiliated to the $15.5bn annual revenue New Hope Group – one of China’s largest privately-owned entities and in the Top 500 Enterprises for 14 consecutive years.

“We are very excited to be launching in China with such a strong joint venture partner in New Hope, who shares our vision and drive in building out the leading Chinese industrial IoT platform.

“This recurring annual revenue model in partnership with New Hope’s network of factories and businesses is expected to provide ITT Inc. with ongoing revenue and a profitable income stream,” said Michael Frank, ITT’s chief executive.

Zhao Gang, chairman of New Hope Data Technology, added: “New Hope Data has already built out a robust data analytics platform and a professional services team, that currently is working with factories in China to monitor and analyze industrial processes and inputs, converting them into actionable insights and knowledge.

“This helps the factories’ management teams improve operational stability, product quality, profitability and reduce downtime. We see a significant market gap that can be filled with the products and services that the JV will be providing for our internal network of factories and external customers across China.”

ITT Inc will hold a 51% interest and will be responsible for providing global industrial IoT technologies such as sensors, predictive analytics and secured wireless, among other technologies to New Hope’s network of more than 600 factories and businesses.

New Hope will hold 49% and its sales and marketing team, big data platform and IT consultants will be responsible for  day-to-day operations. New Hope will also invest initially $2 million as an operating and working capital loan into the JV.

As consideration for New Hope entering into the 30-year joint venture partnership, ITT Inc will issue 28 million shares to New Hope.

These shares will be subject to performance milestones, including the venture generating $3.5 million in aggregate net income over the first three years and receiving TSX Venture Exchange approval.

Story by ProactiveInvestors