Tennant Company and Brain Corp Sign Exclusive Technology Agreement To Accelerate Robotic Floor Cleaning Innovation and Adoption

Rhea-AI Summary

Tennant Company (TNC) invests $32 million in Brain Corp to accelerate the development and adoption of AI-enabled robotic cleaning technologies. The exclusive technology agreement aims to enhance customer ROI, drive AMR revenue growth, and simplify the buying experience by offering all-in-one AMR solutions. Tennant will launch the X4 ROVR, a purpose-built AMR powered by Brain Corp's next-generation technology, to drive robotic cleaning adoption in new market segments.

Insights

Market Research Analyst

The strategic partnership between Tennant Company and Brain Corp signifies a notable shift towards innovation in the commercial cleaning industry. The investment and collaboration are designed to enhance the adoption of Autonomous Mobile Robots (AMR) for floor cleaning, which is a response to pressing industry challenges such as labor shortages and the demand for increased efficiency.

From a market perspective, the exclusive technology agreement could position Tennant as a leader in the AI-enabled robotic cleaning market, potentially increasing its competitive edge. The launch of the X4 ROVR, Tennant's first purpose-built AMR, represents a significant step in product innovation that could capture new market segments and drive demand among businesses seeking technologically advanced cleaning solutions.

Furthermore, the move towards a bundled all-in-one AMR solution could streamline the customer purchase process and establish a recurring revenue model for Tennant, which is a positive indicator for long-term financial stability. This strategic direction aligns with broader market trends where companies are increasingly seeking to lock in long-term service revenues alongside product sales.

Financial Analyst

Tennant's $32 million investment in Brain Corp and the addition of Tennant's CFO to the Brain Corp board of directors suggest a deepening of corporate ties that could have financial implications. Given Tennant's history and market presence, this investment might be seen as a confident move to secure a foothold in the burgeoning field of AI and robotics within the cleaning industry.

Analyzing the potential financial impact, the partnership may lead to an acceleration in revenue growth for Tennant, particularly from the AMR segment. The focus on customer ROI could translate into higher sales volumes as businesses recognize the cost savings and efficiency gains from using autonomous cleaning technology. Additionally, the transition to a recurring revenue model for autonomy services could smooth out revenue streams and potentially improve profit margins over time.

Investors might view this partnership as a proactive step towards sustaining Tennant's growth and adapting to technological advancements, which could reflect positively on the company's stock performance in the long run. However, the success of this strategy will depend on the execution of the product roll-out and the market's reception of the new AMR offerings.

Technology Industry Analyst

The partnership between Tennant and Brain Corp underscores the increasing importance of AI and robotics in industrial applications. The development of the X4 ROVR, with its advanced navigation software and hardware suite, represents a technological leap in the floor-cleaning industry, which has traditionally relied on manual labor.

The emphasis on AI-enabled AMR technology could lead to significant advancements in operational efficiency and safety, addressing key concerns such as obstacle detection and maneuverability in smaller spaces. The exclusive nature of the technology agreement ensures that Tennant machines will be the sole beneficiaries of Brain Corp's advancements in floorcare applications, which could set a new industry standard.

This partnership also illustrates the trend of traditional manufacturing companies investing in technology firms to integrate cutting-edge innovations into their product lines. The success of Tennant's next-generation AMR products will be indicative of the potential for AI-driven automation to transform other sectors within the industrial space.

• Tennant invests in Brain Corp to fuel the next generation of AI-enabled robotic cleaning technologies, enhance customer Return on Investment, and accelerate Autonomous Mobile Robotic (“AMR”) revenue growth

• Expanded relationship creates a differentiated customer support ecosystem led by Tennant sales and service and supported by Brain Corp analytics and insights

MINNEAPOLIS--(BUSINESS WIRE)-- Tennant Company (NYSE: TNC), a world leader in the design, manufacturing, and marketing of solutions to reinvent how the world cleans, and Brain Corp, a leading autonomous technology company creating transformative solutions in robotics and artificial intelligence (“AI”), jointly announce an exclusive technology agreement to accelerate the development and adoption of the next generation of robots in the floor-cleaning industry. This landmark agreement builds on the historically successful partnership between the two companies and seeks to accelerate innovation. Tennant and Brain Corp bring complementary strengths to the relationship that create an exceptional customer support ecosystem. Tennant has a 150-plus year history of building industry-leading cleaning equipment and has expansive direct sales and service coverage. Brain Corp offers industry-leading and AI-enabled AMR cleaning technology, with more than 6,500 Tennant cleaning robots in the field powered by Brain. We expect Tennant’s purpose-built robotic equipment driven by Brain Corp’s next-generation and AI-enabled autonomous navigation technology will improve the customer return on investment and enable more customers to invest in robotic cleaning.

“Our customers have always relied on Tennant for equipment innovation and aftermarket support to address key business challenges such as labor shortages and cost pressures,” said Tennant Company President and CEO Dave Huml. “Our partnership with Brain Corp has already produced an industry-leading portfolio of autonomous equipment in this fast-growing space. We are excited to expand our existing partnership to dramatically accelerate the transition to robotic cleaning and drive adoption in new segments of our markets. By combining cleaning intelligence and automation, we are poised to lead the disruption that AI-enabled robotic technology will bring to our industry.”

In the second quarter of 2024, Tennant will launch the new X4 ROVR, the company’s first purpose-built Autonomous Mobile Robot (AMR). The X4 ROVR offers greater maneuverability, is specifically designed for operation in smaller spaces, and is driven by Brain Corp’s next-generation navigation software and hardware suite which will be available exclusively on Tennant machines for floorcare applications. Its compact size, improved obstacle detection, and enhanced mobility will result in fewer assists and deliver a step-change improvement in customer ROI. The X4 ROVR is expected to drive an increase in robotic cleaning adoption as it provides an on-ramp to customers for whom robotic technology has previously been out of reach. The X4 ROVR is the first of many planned future AMR cleaning products powered by Brain Corp’s next-generation technology that will be exclusively available on Tennant equipment. With this agreement, the partnership seeks to accelerate the build-out of a portfolio of robotic floor-cleaning solutions to cover more cleaning applications and enhance customers’ return on investment to drive adoption.

Tennant and Brain Corp bring complementary strengths to the partnership that are positioned to drive an acceleration of robotic cleaning adoption. Tennant has a 150-plus year history of building exceptional cleaning equipment, a strong go-to-market strategy, and a differentiated customer support ecosystem. Brain Corp offers industry-leading and AI-enabled AMR cleaning technology, with more than 6,500 Tennant cleaning robots in the field powered by BrainOS^®.

With this agreement and starting with the X4 ROVR, Tennant will begin offering an all-in-one AMR solution, with the equipment and autonomy services bundled as a single solution sold by Tennant. This new approach will simplify the buying experience for customers and result in Tennant benefiting from recurring revenue for autonomy services moving forward.

“This partnership further aligns two companies driven by a shared purpose: to elevate productivity and efficiency, and provide essential support for janitorial teams facing understaffing and overwhelming demand,” said Brain Corp CEO David Pinn. “At Brain Corp, we envision a world where people’s lives are made safer, easier, more productive, and more fulfilling with the help of robots, and I believe this expanded partnership will supercharge this into reality.”

“Innovation and customer focus are a significant part of Tennant’s identity,” said Huml. “This partnership amplifies our commitment to innovation as well as Brain Corp’s position as a pioneer in AI and automation applied to cleaning equipment. We are excited to unlock the full potential of next-generation robotic floor cleaning solutions that deliver true business value to customers who use our AMR equipment today and those who are waiting eagerly for an AMR solution that they can leverage for their businesses.”

With this agreement, Tennant invested $32 million in Brain Corp and Fay West, Tennant Company Senior Vice President and Chief Financial Officer, will join the Brain Corp board of directors.

About Tennant

Founded in 1870, Tennant Company (NYSE: TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its innovative products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.24 billion in 2023 and has approximately 4,457 employees. Tennant has manufacturing operations throughout the world and sells products directly in 15 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com.

About Brain Corp

Brain Corp is the global leader in robotic AI software that powers the largest fleet of autonomous mobile robots (AMRs) operating in commercial public spaces. Global OEM partners use the company's cloud-connected platform, BrainOS^®, to create scalable, self-driving robots that are used by end customers to clean floors and sense environmental data - turning manual operations into automated workflows. Fortune 500 brands across multiple verticals benefit from the growing portfolio of BrainOS^®-powered robots and our industry-leading privacy, safety and efficiency tools that make managing and scaling automation easier. Brain Corp currently powers more than 30,000 AMRs, representing the largest fleet of its kind in the world.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222888342/en/

INVESTOR RELATIONS CONTACT:

Lorenzo Bassi

Tennant Company

Vice President, Finance and Investor Relations

investors@tennantco.com

763-540-1242

MEDIA CONTACTS:

Josh Stanbury

Brain Corp

Media Relations

josh@sjspr.co

416-628-7441

Jason Peterson

Tennant Company

Director, Corporate Communications

jason.peterson@tennantco.com

763-513-1849

Source: Tennant Company

FAQ

What is the purpose of Tennant's investment in Brain Corp?

Tennant invested in Brain Corp to accelerate the development and adoption of AI-enabled robotic cleaning technologies.

How much did Tennant invest in Brain Corp?

Tennant invested $32 million in Brain Corp.

What is the name of Tennant's first purpose-built AMR?

Tennant's first purpose-built AMR is called the X4 ROVR.

Who will join the Brain Corp board of directors from Tennant?

Fay West, Tennant Company Senior Vice President and Chief Financial Officer, will join the Brain Corp board of directors.

What is the goal of the exclusive technology agreement between Tennant and Brain Corp?

The exclusive technology agreement aims to enhance customer ROI, drive AMR revenue growth, and simplify the buying experience by offering all-in-one AMR solutions.