Tech platform TILT Holdings acquires vaporizer company Jupiter Research in US$210m deal

TILT Holdings Inc., an infrastructure and technology platform serving the cannabis industry, has agreed to acquire Jupiter Research for US $210 million.

Jupiter is an inhalation and vaporization technology company. TILT says the buyout will further expand its technology ecosystem and B2B reach across the supply chain.

Jupiter Research was founded in 2015 by prior NJOY product developer Mark Scatterday and Bob Crompton.

Scatterday, Jupiter’s President, stated, “Our rich heritage in CPG and e-cigarette product innovation combined with long-standing manufacturing partnerships in China provided us a market leading advantage to bring advanced high-performance technologies to the cannabis industry.”

Jupiter Research produces power supplies and cartridges specifically designed for cannabis oil in the market today, featuring exclusively ceramic CCELL technology.

“Our acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production and retail.”

Alex Coleman, TILT Holdings (pictured)

Jupiter partners with more than 700 brands and cannabis retailers across the U.S., Canada, Israel and the E.U., and generated approximately US$77M in 2018 revenue with an estimated 20% EBIDTA margin, and already has US$28M in booked orders going into Q1.

“Our acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production and retail,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “Vaporization is increasingly becoming the preferred method for cannabis consumption. With Jupiter’s proprietary inhalation technology, our offerings in this category are going to be unparalleled.”

Crompton added, “Jupiter Research’s monthly sales continue to increase 15 percent month over month, and we already have US$28M of booked orders going into Q1. The opportunity to combine the synergies of the TILT portfolio of companies is expected to add to our rapid growth.”

Consideration for the Jupiter acquisition is US$210M, consisting of US$70M cash and 56,116,723 common shares of TILT. The outside date for the closing of the acquisition is January 31, 2019.Cannabis Business Worldwide