Qonnectis, the cash-strapped meter reading technologies business, returned to AIM this morning under the new guise of Water Intelligence (WATR), following a reverse takeover of American Leak Detection Holding Corp and a £0.8m fundraising through an open share offer. At an issue price of 75p per share, Water Intelligence will have a market capitalisation of £6.75m.

American Leak Detection focuses on specialist leak detection, including hidden water and sewer leaks, together with repair and other related services. The move will also see an expansion of the sales channel for existing Qonnectis products. ALD wants to use the deal with Qonnectis to establish a UK operation and maximise its franchise and corporate run opportunities and drive product innovation. It will continue to trade through the established ALD brand, which operates through 114 franchises operating multi service vehicles established in the US and a further 15 franchises outside the US. In 2009, the company turned over around $5.5m.

Patrick DeSouza, the executive chairman of Water Intelligence, said: “We are delighted to have completed this transaction which will provide ALD with a platform to grow its already established core business and provide the enlarged group with an opportunity to address significant opportunities in the key water management sector. The integration of products and services across the group should deliver improved service levels and new opportunities across our customer base which will drive Water Intelligence's growth.”

In the 18 months to December 2009 Qonnectis was ravaged by the economic downturn and a forced reduction in staff levels caused revenues to fall to £55,282 from £456,678 in 2008.

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