Quisitive Expands Canadian Footprint with Corporate Renaissance Group Acquisition
Toronto, Ontario -- June 5, 2019 -- NewsGenie -- Quisitive Technology Solutions, Inc. (TSXV: QUIS) has acquired Corporate Renaissance Group Inc. (CRG), an Ottawa-based provider of Microsoft tech, consulting, and business software. The transaction, effective June 1, 2019, aims to bolster Quisitive's Microsoft solutions offerings across North America.
CRG, recognized as a top Microsoft Dynamics solutions partner in Canada’s capital region, brings over 4,500 customers and expertise in business and financial management, consulting, and software development. In 2018, CRG generated approximately C$7.8 million in revenue, with 30% recurring, and about C$3 million in adjusted EBITDA.
The acquisition provides Quisitive with a broader geographic reach and enhances its cloud services with CRG's Microsoft Dynamics capabilities. CRG’s emPerform software adds a recurring revenue stream to Quisitive’s business model. Quisitive CEO Mike Reinhart said that the deal accelerates their collective opportunity to become the premier Microsoft solutions provider in North America for Microsoft business solutions and cloud innovations.
CRG president Dr. Vijay Jog said the partnership would scale their Dynamics 365 enterprise performance business and expand cloud service offerings, leveraging Quisitive’s Microsoft Azure and Microsoft Office 365 expertise. Dr. Jog will join Quisitive's board.
The deal includes C$5.65 million in cash, 4,473,684 Quisitive shares (valued at C$850,000), secured promissory notes of C$6.5 million, and 19.5 million common share purchase warrants. An earn-out consideration is also possible if CRG hits certain financial goals over the next three years.
Quisitive management held a conference call on June 6, 2019, to discuss the acquisition. The company also announced a non-brokered private placement with CRG management for up to 750,000 Quisitive Shares at C$0.20 per share.