CALGARY, ALBERTA–(Marketwired – Aug. 22, 2017) – Quorum Information Technologies Inc. (TSX VENTURE:QIS) (“Quorum” or the “Corporation”) announced today that it has signed a Definitive Agreement (the “Agreement”) with Autovance Technologies Inc. (“Autovance”) whereby the Corporation will acquire all of the issued and outstanding shares of the company (the “Transaction”).
Maury Marks, Quorum's President and CEO stated, “The Autovance team, under Rick Johnston's (President of Autovance) leadership, have a proven track record for developing an unparalleled Desking product for the Canadian retail automotive market. Together with Autovance, we have been able to integrate the Autovance desking product seamlessly into Quorum's Dealership Management System (“DMS”) sales process to provide dealerships with a more integrated end-to-end business process for their vehicle sales department.”
Quorum and Autovance are completing this transaction for a number of strategic reasons:
- Currently 63 of Quorum's dealership customers utilize the Autovance Desk product out of a total of 148 dealerships on Autovance.
- Rick Johnston will join the Quorum senior management team and provide more depth to the team.
- Autovance has a strong product plan and growth path in both Canada and the US marketplace and can add significant future revenue for Quorum.
- The transaction supports Quorum's strategic integrated end-to-end business process direction as outlined below.
Currently, a typical dealership sales department utilizes (and pays for) multiple, partially integrated or disparate systems to handle their functional needs for products such as desking, menuing, equity mining, showroom trafficking, marketing, internet, text and chat lead management, and dealership management.
Quorum's vision to meet all the needs of the sales department is to work with select partners to deliver on our strategy of a single integrated end-to-end business process through the DMS. One of the key reasons we completed the acquisition is because Autovance has become a critical component of our strategy, and has had great success with our DMS customers. From a Quorum shareholder's perspective, dealerships are already paying for multiple 3rd party products to try to meet their sales department needs. When Quorum, with 3rd party partners, can deliver more value with a truly integrated end-to-end business process strategy, we can translate that into growth of our revenue and margins.
Under the terms of the Agreement, the Corporation will acquire all of the issued and outstanding shares of Autovance for consideration comprised of a combination of cash and restricted share units (“RSUs”) of Quorum to be granted pursuant to the Corporation's incentive award plan. The RSUs will be granted upon the achievement of certain milestones by Autovance post-closing and, upon the satisfaction of each milestone, will vest over a period of two years from the date of milestone satisfaction. The employees of Autovance will also be entitled to participate in the Corporation's incentive award plan upon completion of the Transaction.
Closing of the Transaction is subject to customary closing conditions. Quorum anticipates that the Transaction will be complete on September 1, 2017.
Quorum is a North American company focused on developing, marketing, implementing and supporting its dealership and customer management system, XSELLERATOR. Quorum offers the system to franchised, independent and some non-automotive dealerships in Canada and the United States. XSELLERATOR automates, integrates and streamlines every process across departments in a dealership. The system includes tools designed to maximize revenue opportunities for dealerships such as customer relationship management (CRM) and service inspection and quoting processes. Quorum is a Microsoft partner and XSELLERATOR is developed with modern mobile-enabled technology. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS and in 2016 was selected to the TSX Venture 50®, an annual ranking of the strongest performing companies on the TSX Venture Exchange. For additional information please go to www.QuorumDMS.com.
This news release contains forward-looking information. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the anticipated timing of closing of the Transaction, the Corporation's plans to integrate Autovance with the operations of Quorum and management's expectations of the effect of the Transaction on Quorum's operations, financial performance and strategic position in certain market segments. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include market and industry conditions affecting Quorum's operations, the successful integration of Autovance's products, employees and customers with Quorum, and the successful execution of Quorum's strategic initiatives involving Autovance.
Although the Corporation believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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.