Canadian internet of things (IoT) firm mCloud Technologies has dropped its acquisition bid for Australia’s BuildingIQ provoking a potential legal tussle.
Publicly-listed BuildingIQ, which also provides smart technology, told shareholders that the non-binding expression of interest (EOI), announced on 11 February this year, between the two parties had been terminated.
Under the agreement, mCloud Technologies would have provided a working capital facility to support BuildingIQ this year.
In addition to this, it also offered to acquire 389 million CHESS Depositary Interests (CDIs) in BuildingIQ in exchange for 882,230 mCloud shares.
"BuildingIQ is a highly complementary business to our own AssetCare segment for smart buildings," said Russ McMeekin, mCloud president and CEO, at the time.
The deal would have seen BuildingIQ's artificial intelligence and IoT solutions integrated into mCloud's own AssetCare.
BuildingIQ said it had received half a million dollars in funding towards the facility on 18 February, but had not received any more since.
The company added that it was “considering its legal options” over the termination and a $500,000 termination fee.
mCloud Technologies declined to comment.