LAFAYETTE — Indoor cannabis agriculture engineering firm Urban-gro Inc. (Nasdaq: UGRO) has inked a letter of intent with Dawson Van Orden Inc. to acquire the Texas engineering firm with expertise in controlled environment agriculture.
The $7.25 million cash and stock deal is expected to close in the fourth quarter of 2022.
DVO has 24 employees in Houston.
“The addition of DVO represents an extraordinary opportunity to add depth and breadth of indoor CEA engineering expertise to our professional services offering. While this accretive and synergistic transaction increases our professional services revenues and margins along with future opportunities to leverage their existing clients, it also immediately adds a deep bench of talent and an engineering leadership structure to scale and meet the rising demand for our turnkey design build solutions, UG CEO Bradley Nattrass said in a prepared statement. “Furthermore, I’m excited about the opportunity to continue strengthening our presence in Texas, as we expect the state to be an influential future business opportunity as cannabis legalization is considered.”