Quorum Announces Acquisition of Accessible Accessories
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 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.
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