Cortex expands the competitiveness of its industry leading E-Invoicing platform with the announcement of the Acquisition of P...
28 September 2018 - 10:30PM
Cortex Business Solutions Inc. (“Cortex”) (TSXV: CBX), a North
American network-as-a-service e-invoicing solutions provider, today
announces it has entered into a share purchase agreement (the
“Purchase Agreement”) with the shareholders of Powervision Software
Inc. (“Powervision”), pursuant to which Cortex has agreed to
acquire all of the issued and outstanding common and preferred
shares of Powervision (the “Transaction”) for an aggregate purchase
price of $7,000,000, to be satisfied by way of a cash payment of
$4,750,000, subject to customary holdbacks and adjustments, and a
promissory note in the amount of $2,250,000.
Powervision is a privately-owned corporation
specializing in the development electronic document management and
workflow management software. Powervision’s client base crosses
multiple verticals of business from finance to oil and gas
throughout Canada. Powervision has been a pioneer and a
leader in the provision of such solutions in the Canadian energy
industry since its inception in 1992. Powervision’s acclaimed AP
Workflow product is used daily by hundreds of users. Powervision
has been a Cortex partner since Cortex’s inception and a
significant number of Powervision customers are already on the
Cortex Network. The acquisition of Powervision will strengthen and
expand Cortex’s position as the digital document platform of choice
across North America.
“I believe this transaction is transformational
for Cortex and its stakeholders. The combining of these
technologies, similar cultures and customer-centric values has been
a long time coming in our customers’ eyes and with their continual
support, we will now be providing a single source to our clients
that has historically required our customers to use 2 vendors, 2
support numbers and have 2 budgets for a solution that has always
worked great together. Cortex has expanded its product offering to
include a digital document workflow and storage solution,” said
Joel Leetzow, President and CEO of Cortex. “This acquisition is
aligned with what I have shared previously regarding our growth
strategy through both M&A transactions and organic growth.”
“We are thrilled to combine the highly
synergetic Cortex e-invoicing-as-a-service with the expanded
workflow and document management solutions offering of Powervision
allowing Cortex to be more competitive,” said Jason Baird, VP,
Finance & CFO of Cortex. “This transaction will grow
Cortex’s consolidated revenue, EBITDA, operating margins, and
customer base to add immediate value for our shareholders and
provide more growth potential of our products.”
Transaction Highlights
Operations
- Powerful vertical solution for procure-to-pay solutions
- Over 60 active customers
- High revenue per employee historically
- Strong partnerships and third-party integration solutions
Finance
- Over $2.3 million in 2017 annual revenue
- Strong historical cash flows
- High historical operating margins
The Transaction was purposely structured to not dilute current
Cortex shareholders while improving Cortex’s balance sheet and
future growth opportunities.
Cortex expects that the closing of the Transaction will occur in
the coming days. The closing of the Transaction is subject to
certain closing conditions as set out in the Purchase Agreement,
and the approval of the TSX Venture Exchange.
Cortex has tentatively scheduled a conference call to address
the acquisition for Monday October 1st, 2018 at 9:00am Mountain
time (11:00am Eastern time). Conference call details will be
announced upon closing of the acquisition.
About Cortex
Cortex’s strategy is to revolutionize B2B document exchange by
replacing traditional paper-based manual systems with efficient,
automated solutions. This positions companies with the scalability
and flexibility needed to meet the demands of today’s business.
Cortex offers a B2B network that enables electronic invoicing for
buying and supplying organizations using flexible connection
methods to leverage existing customer technologies and processes.
Access to the Cortex Network enhances the exchange of documents
allowing companies to connect and interact with each other to grow
their businesses.
Cortex is currently delivering e-invoicing services to over
11,000 Trading Partners in Oil & Gas, Mining, Manufacturing and
Sports & Entertainment industries.
For more information, please visit
www.cortex.net.
Investor Relations Contacts:
Joel Leetzow
President and CEO
jleetzow@cortex.net
403-219-2838
Jason Baird
VP, Finance &
CFOjbaird@cortex.net403-219-2838
Forward Looking Statements:
This news release contains forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. In particular, this news release
contains forward-looking information relating to the closing of the
Transaction and TSXV approval of the Transaction. The
forward-looking statements and information are based on certain key
expectations and assumptions made by Cortex. Although Cortex
believes that the expectations and assumptions on which such
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the forward
looking statements and information because Cortex can give no
assurance that they will prove to be correct.
Since forward-looking statements and information
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number
of factors and risks. Such factors may include the failure to close
the Transaction and failure to receive TSXV approval for the
Transaction. Other factors which could materially affect such
forward-looking information are described in the risk factors in
Cortex’s most recent annual management’s discussion and analysis
that is available on Cortex’s profile on SEDAR at www.sedar.com.
Readers are cautioned that the foregoing list of factors is not
exhaustive. The forward-looking statements included in this news
release are expressly qualified by this cautionary statement. The
forward-looking statements and information contained in this news
release are made as of the date hereof and Cortex undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cortex Business Solutions Inc. (TSXV:CBX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cortex Business Solutions Inc. (TSXV:CBX)
Historical Stock Chart
From Jul 2023 to Jul 2024