Source – https://www.bizjournals.com/boston/news/2019/01/03/cambridge-cannabis-firm-tilt-to-buy-vape-tech.html
Massachusetts cannabis company Tilt Holdings Inc. has acquired an Arizona-based vape company for $210 million, broadening the array of cannabis products offered under the TILT brand.
Cambridge-based Tilt announced on Thursday morning that it had acquired Jupiter Research on Jan. 2. Tilt said it will acquire the company with $70 million in cash and $140 million in shares. The deal is anticipated to close Jan. 31.
Jupiter joins Tilt’s four founding businesses: Sea Hunter Therapeutics, a Cambridge-based cannabis consulting firm that also makes cannabis packaged goods; customer relations technology company Baker Technologies in Colorado; delivery company Briteside Holdings LLC in Oregon; and Canadian dispensary Sante Veritas Holdings Inc.
The company says the deal is one of the largest acquisitions in the history of the industry.
“Our latest acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production and retail,” said Tilt CEO Alex Coleman in a statement. “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.”
Jupiter, founded only in 2015, reported $77 million in sales in 2018, with customers around the globe purchasing the company’s cannabis vape pen power supplies and cartridges. The company currently partners with 700 brands and cannabis retailers in the U.S., Canada, Israel and the EU.
Jupiter’s vape pen technology will further TILT’s expansion as a business-to-business company in the cannabis space, adding to the suite of services it offers cannabis dispensaries, from funding and building out dispensaries, to providing the technology to capture customers and deliver products, and offering branded products.
Joel Milton, senior vice president of software and services at Tilt, said in an email that Jupiter sells “hardware and technology, featuring CCELL technology, to extractors or processors — anyone cultivating marijuana and crafting it into oil. Dispensaries, with cultivation licenses, and licensed processors fill our cartridges with concentrate and sell through retail channels such as dispensaries.”
The acquisition follows the creation of TILT through the four company merger in early December, as well as a $119 million initial public offering on the Canadian Securities Exchange also announced last month.