Internet of Things (IoT) has signed a letter agreement to acquire Weather Telematics (WTX), a data science company which focuses on offering road safety data products for safer, connected and autonomous transportation.

Under the agreement, IoT will purchase 100% of the issued and outstanding shares of WTX for $2.53m.

The amount will be paid in three tranches following the completion of the deal.

WTX provides real-time hyper-local road condition predictions using a vast set of data based on millions of miles of road weather data.

It generates this information by utilising advanced artificial intelligence (AI) system, a mobile sensor network and data fusion platform.

“After the completion of this acquisition, IoT intends to expand WTX into China through its New Hope IoT Intl joint venture partnership.”

The company has patents pending in multiple jurisdictions for its solution. WTX is also said to have an expanding sales pipeline comprising of automotive OEMs, electric vehicle manufacturers, telematics and logistics providers.

Weather Telematics CEO Robert Moran said: “Internet of Things Inc.’s vision closely aligns with our strategy to apply AI-based predictive data and IoT sensor networks to solve some of the global challenges facing the transportation, insurance, and weather sectors.”

The acquisition, subject to board of directors’ approval of both companies and the TSX Venture Exchange approval, is expected to close by the end of this month.

IoT CEO Michael Frank said: “We are looking forward to working with Weather Telematics management even more closely to accelerate and expand their market penetration and to maximise the return on investment for our shareholders.”

After the completion of this acquisition, IoT intends to expand WTX into China through its New Hope IoT Intl joint venture partnership.