Why Are Air Quality Solutions Provider Applied UV Shares Surging Today?

Shares of air quality, and specialty building solutions provider Applied UV, Inc AUVI are extending their gains after the company's recent announcement on successfully integrating its PURO and Airocide businesses into its Sterilumen subsidiary.

The aim of the combination is to optimize Applied UV's portfolio, reduce costs, deliver margin expansion and drive sustainable shareholder value creation.

The company expects the PURO and Airocide integration and other cost-saving initiatives previously completed to reduce ongoing operating expenses annually by about $1 million beginning in FY24.

"We believe the product platform and breadth of solutions created through this integration is of the highest quality and well diversified and allows SteriLumen to be a truly global player across North America, Europe, Asia, and the Middle East," said CEO Max Munn.

PURO UV Disinfection Lighting promotes health and safety by bringing UV light disinfection devices to all indoor spaces where people gather including hospitals, schools and universities, medical and manufacturing facilities.

"This integration marks a pivotal moment in the company's evolution, creating a unified sales team that has already begun to unlock significant synergies and opportunities with our existing customer base," said Brian Stern, President of PURO.

The company expects its operating units to be cash flow positive in the second quarter of FY24.

Price Action: AUVI shares, which closed 21.2% higher at $1.83 on Tuesday, are trading higher by 22.9% at $2.25 in premarket on the last check Wednesday.