CALGARY, Alberta, March 10, 2022 (GLOBE NEWSWIRE) — Quorum Information Technologies Inc. (QIS: TSXV) (“Quorum” or the “Company”), a SaaS software and services company that provides mission-critical software on which vehicle dealers account for operations across North America, is pleased to announce that it has entered into a definitive agreement to acquire (the “Transaction”) Accessible Accessories Ltd. (“Available”). The transaction is expected to close on or about April 1, 2022. Accessible is Quorum’s fourth acquisition since 2017 and marks another step in Quorum’s strategy to be a full-service provider for automotive dealerships.
Accessible is headquartered in Medicine Hat, Alberta, Canada, and has over 680 franchise car dealerships across Canada. Accessible develops, implements and supports its web-based platform that enables franchise dealers to sell accessories more efficiently. Accessible is a growing company with a proven team and a large customer base of very successful dealerships. The main strategic reasons for this transaction include:
Accessible’s complementary products provide strategic cross-selling opportunities and contribute to Quorum’s strategy of becoming a full-service software provider for automotive dealerships. Canadian dealerships, placing Quorum in a leadership position in Canada. Quorum expects the transaction to add annual Software as a Service (“SaaS”) revenue of approximately $1.5 million and gross margins, adjusted EBITDA1 and cash flow from the transaction should be accretive to ongoing operations. The consideration for the transaction is $4.5 million in cash with a 10% holdback which will be released on September 30, 2022, in accordance with the terms of an earnout structure. Quorum will use existing cash reserves and its BDC Capital facility to fund the cash consideration. Solution accessible in its MyDeal digital retail solution to provide a valuable accessory sales tool for dealership customers when purchasing vehicles online.
“The Accessible team, under the leadership of Don Doonan and Brone Miller, has a proven track record in developing an exceptional accessory solution for the automotive retail market,” said Maury Marks, President and CEO. from the direction of Quorum. “We look forward to the Accessible team joining Quorum and to Don and Brone continuing to work with Quorum during the onboarding period. Accessible has an incredible software solution and we will be able to offer significant added value to dealer customers by integrating it with Quorum’s current product suite.”
“Quorum is an organization that shares Accessible’s values of customer service and delivering innovative products that bring real value to dealers. This acquisition will strengthen the Accessible solution by introducing more innovation to the solution,” said Don Doonan, President and CEO of Accessible. “We would also like to thank our incredible team at Accessible who have been the driving force behind our growth. We are delighted that Quorum is keeping our team together to continue providing the high level of support that accessible dealerships are accustomed to. »
1 Adjusted EBITDA (non-GAAP) – Net earnings (loss) before interest and financing costs, taxes, depreciation, amortization, stock-based compensation, foreign exchange gains and losses, one-time acquisition-related expenses and restructuring costs.
About Quorum Information Technologies Inc.
Quorum is a North American company focused on the development, marketing, implementation and support of its automotive dealer software and services portfolio which includes:
Quorum’s Dealership Management System (DMS) automates, integrates and streamlines key processes across all departments of a dealership, and focuses on revenue generation and customer satisfaction.
DealerMine CRM, a sales and service customer relationship management (CRM) system and set of business development center services that drive revenue into a dealership’s critical sales and service departments.
Autovance, a modern retail platform that helps dealers attract more business through digital retail, improve in-store profits and closing rates through its desktop tool, and maximize their efficiency and their CSI thanks to Autovance’s F&I menu solution.
Quorum Information Technologies Inc. is listed on the TSX Venture Exchange (TSXV) under the symbol QIS. For more information, go to QuorumInformationSystems.com.
Maury Marks President and CEO 403-777-0036 [email protected]
Marilyn Bown Chief Financial Officer 403-777-0036 [email protected]
Investor Relations Contact Ron Shuttleworth Partner Oak Hill Financial 647-500-7371 [email protected]
This press release may contain certain forward-looking statements and information (“forward-looking information”) within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “intend”, “target”, “continuing”, “ongoing”. “, “estimate”, “expect”, “may”, “will”, “project”, “should”, or similar words suggesting future results. Quorum believes that the expectations reflected in such forward-looking information are reasonable, but there can be no assurance that such expectations will prove to be correct and undue reliance should not be placed on such forward-looking information.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties, some of which are described here. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum’s actual performance and financial results in future periods to differ materially from projections of future performance or results expressed or implied by such forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this release and accepts no responsibility for its adequacy or accuracy. of this press release.
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