Quorum Announces Acquisition of Accessible Accessories Ltd.
11 March 2022 - 11:49AM
Quorum Information Technologies Inc. (QIS:TSXV) (“Quorum” or the
“Company”), a SaaS software and services company that provides
essential software that vehicle dealerships rely on for operations
throughout North America, is pleased to announce that it has
entered into a definitive agreement for the acquisition (the
“Transaction”) of Accessible Accessories Ltd. (“Accessible”). It is
anticipated that the Transaction will be completed on or about
April 1st, 2022. Accessible is Quorum’s fourth acquisition since
2017 and marks another step forward in Quorum’s strategy to be a
full-service provider to automotive dealerships.
Accessible is headquartered in Medicine Hat,
Alberta, Canada and has over 680 automotive franchised dealership
customers across Canada. Accessible develops, implements, and
supports its web-based platform that allows franchised dealerships
to sell accessories more effectively. Accessible is a growing
business with a proven team and a large customer base of very
successful dealerships. Key strategic reasons for this Transaction
include:
- Accessible’s
complementary products provide strategic cross-sell opportunities
and contribute to Quorum’s strategy to become a full-service
software provider to automotive dealerships.
-
Post-acquisition, at least one Quorum product will be installed in
over 1,450 North American franchised dealerships including over 40%
of the Canadian dealerships, which places 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 are expected to be
accretive to current operations.
- Consideration
for the Transaction is $4.5 million in cash with a 10% holdback to
be released September 30, 2022, pursuant to the terms of an
earn-out structure. Quorum will utilize current cash reserves and
its BDC Capital facility to fund the cash consideration.
- Quorum plans to
integrate the Accessible solution into the Quorum Dealership
Management System, thereby providing many efficiencies for parts
and service departments within dealerships.
- Additionally,
Quorum plans to integrate the Accessible solution into its MyDeal
digital retailing solution to provide a valuable accessories sales
tool to dealership customers when they are purchasing vehicles
online.
“The Accessible team, under the leadership of
Don Doonan and Brone Miller, has a proven track record of
developing an exceptional accessories solution for the automotive
retail market,” stated Maury Marks, Quorum’s President and CEO. “We
look forward to having the Accessible team join Quorum and for Don
and Brone to continue to work with Quorum through the integration
period. Accessible has an incredible software solution and we will
be able to deliver significant additional value to dealership
customers by integrating it into Quorum’s current product
suite”.
“Quorum is an organization that shares
Accessible’s values for customer service and for delivering
innovative products that provide real value to dealerships. This
acquisition will strengthen the Accessible solution by driving more
innovation into the solution,” stated Don Doonan, Accessible’s
President and CEO. “We would also like to thank our incredible team
at Accessible that have been the driving force behind our growth.
We are delighted that Quorum is keeping our team together to
continue to provide the high level of support that Accessible
dealerships are accustom to.”
1 Adjusted EBITDA (non-GAAP) – Net income (loss)
before interest and financing costs, taxes, depreciation,
amortization, stock-based compensation, foreign exchange gains and
losses, one-time acquisition-related expenses and restructuring
fees.
About Quorum Information Technologies
Inc.
Quorum is a North American company focused on
developing, marketing, implementing and supporting its portfolio of
software and services for automotive dealerships that includes:
Quorum’s Dealership Management System (DMS)
automates, integrates and streamlines key processes across
departments in a dealership, and emphasizes revenue generation and
customer satisfaction.
DealerMine CRM, a sales and service Customer
Relationship Management (CRM) system and set of Business
Development Centre services that drives revenue into the critical
sales and service departments in a dealership.
Autovance, a modern retailing platform that
helps dealerships attract more business through Digital Retailing,
improve in-store profits and closing rates through its desking tool
and maximize their efficiency and CSI through Autovance’s F&I
menu solution.
Quorum Information Technologies Inc. is traded
on the TSX Venture Exchange (TSXV) under the symbol QIS. For
additional information, please go to
QuorumInformationSystems.com.
Contacts:
Maury MarksPresident and Chief Executive
Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Investor Relations ContactRon
ShuttleworthPartnerOak Hill
Financial647-500-7371rshuttleworth@oakhillfinancial.ca
Forward-Looking Information
This press release may contain certain
forward-looking statements and forward-looking 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”, “objective”, “continuous”, “ongoing”,
“estimate”, “expect”, “may”, “will”, “project”, “should” or similar
words suggesting future outcomes. Quorum believes the expectations
reflected in such forward-looking information are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Forward-looking information is not a guarantee
of future performance and involves a number of risks and
uncertainties some of which are described herein. 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 any 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
neither accepts responsibility for the adequacy or accuracy of this
release.
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