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Toronto, Ontario -- December 9, 2019 -- NewsGenie -- Quisitive Technology Solutions, Inc. (TSXV:QUIS) has agreed to acquire Menlo Technologies, Inc., a Microsoft technology, corporate consulting, and business software provider based in Menlo Park, California. The transaction, detailed in a definitive share purchase agreement, is expected to close around January 1, 2020, pending regulatory and TSX Venture Exchange approvals.
Menlo Technologies specializes in cloud development, data analytics, mobile technology, and enterprise business application services. With its Silicon Valley headquarters and a development center in Hyderabad, India, Menlo provides managed onshore and offshore development services. The company reported unaudited revenues of approximately US$17.5 million and adjusted EBITDA of approximately US$2.4 million for the trailing twelve months ended September 30, 2019.
"We are thrilled to join forces with the Quisitive family," said Gary Prioste, Menlo CEO. "The Quisitive brand has significant strength, that when paired with our competencies will allow us to scale beyond our geographies and accelerate our ability to reach and engage with larger enterprise customers."
Menlo supports numerous clients globally through application modernization and business application consulting. Their expertise includes Microsoft Dynamics ERP and government compliance knowledge with an office in Washington, DC. Their West Coast offices are recognized for cloud development and Azure migrations.
Quisitive CEO Mike Reinhart stated, "The integration of the Menlo competencies into the Quisitive portfolio will activate substantial enterprise growth in our North American market. The Menlo acquisition is a strong complement to our June 2019 CRG acquisition, accelerating our collective vision to build the premier Microsoft solutions provider in North America for Microsoft Dynamics business solutions and cloud innovations."
The acquisition involves US$3,774,190 in cash, 19,784,981 Quisitive shares, and US$5,000,000 in convertible debentures. The vendors may also receive a performance-based earn-out of up to US$4,500,000, payable in cash and Quisitive shares, if MENLO achieves certain financial targets over three years.
The funds for the cash payment and acquisition fees will be secured through a US$7,500,000 demand loan.
About Quisitive: Quisitive is a Microsoft solutions provider focused on helping enterprise organizations move, operate, and innovate in the Microsoft cloud.
About MENLO: Menlo Technologies, based in Los Altos, California, provides software development solutions, including web, mobile, and cloud development, and business applications.
Quisitive Expands Microsoft Solutions with Menlo Technologies Acquisition
Toronto, Ontario -- December 9, 2019 -- NewsGenie -- Quisitive Technology Solutions, Inc. (TSXV:QUIS) has agreed to acquire Menlo Technologies, Inc., a Microsoft technology, corporate consulting, and business software provider based in Menlo Park, California. The transaction, detailed in a definitive share purchase agreement, is expected to close around January 1, 2020, pending regulatory and TSX Venture Exchange approvals.
Menlo Technologies specializes in cloud development, data analytics, mobile technology, and enterprise business application services. With its Silicon Valley headquarters and a development center in Hyderabad, India, Menlo provides managed onshore and offshore development services. The company reported unaudited revenues of approximately US$17.5 million and adjusted EBITDA of approximately US$2.4 million for the trailing twelve months ended September 30, 2019.
"We are thrilled to join forces with the Quisitive family," said Gary Prioste, Menlo CEO. "The Quisitive brand has significant strength, that when paired with our competencies will allow us to scale beyond our geographies and accelerate our ability to reach and engage with larger enterprise customers."
Menlo supports numerous clients globally through application modernization and business application consulting. Their expertise includes Microsoft Dynamics ERP and government compliance knowledge with an office in Washington, DC. Their West Coast offices are recognized for cloud development and Azure migrations.
Quisitive CEO Mike Reinhart stated, "The integration of the Menlo competencies into the Quisitive portfolio will activate substantial enterprise growth in our North American market. The Menlo acquisition is a strong complement to our June 2019 CRG acquisition, accelerating our collective vision to build the premier Microsoft solutions provider in North America for Microsoft Dynamics business solutions and cloud innovations."
The acquisition involves US$3,774,190 in cash, 19,784,981 Quisitive shares, and US$5,000,000 in convertible debentures. The vendors may also receive a performance-based earn-out of up to US$4,500,000, payable in cash and Quisitive shares, if MENLO achieves certain financial targets over three years.
The funds for the cash payment and acquisition fees will be secured through a US$7,500,000 demand loan.
About Quisitive: Quisitive is a Microsoft solutions provider focused on helping enterprise organizations move, operate, and innovate in the Microsoft cloud.
About MENLO: Menlo Technologies, based in Los Altos, California, provides software development solutions, including web, mobile, and cloud development, and business applications.