Author Topic: QIS.v - Quorum Information Technologies  (Read 34340 times)

Southpaw

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Re: QIS.v - Quorum Information Technologies
« Reply #70 on: December 04, 2018, 12:13:49 PM »
Noticed no one had posted in a while. Anyone still following? Quorum announced a transformative, accretive acquisition that doubled the size of the company. Also, Beacon Securities initiated sell side coverage last week with a $1.25 price target (3x 2020 revenue, still several multiple turns below comps).

From the press release for the Dealermine acquisition:

There are many strategic reasons for the transaction, including:
- Accelerating Quorum’s strategy to be a full-service provider to automotive dealerships by adding DealerMine’s complementary product set and BDC services.
- DealerMine is a fast growing business with a proven management team and a large number of very successful dealership customers.
- DealerMine’s Service CRM products and BDC services have a strong growth opportunity within the existing Quorum customer base.
- The Transaction significantly expands the new combined Company’s scale and footprint in the automotive dealership software space.
- Quorum expects some economies of scale in the areas of industry events/memberships, government financing/programs and OEM relationships/programs across the combined entity.
- Quorum expects the Software as a Service (“SaaS”) revenue, BDC revenue, EBITDA and cash flow from the Transaction to be immediately accretive.

Like with the Autovance acquisition, there should be some good cross-selling opportunities.

Full press release:

http://quorum.mwnewsroom.com/press-releases/quorum-announces-acquisition-of-dealermine-inc-tsx-venture-qis-gnw_2577167_001


KJP

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Re: QIS.v - Quorum Information Technologies
« Reply #71 on: January 04, 2019, 09:07:55 AM »
Another acquisition:  http://globenewswire.com/news-release/2019/01/02/1679859/0/en/Quorum-Announces-Acquisition-of-Oasis-Auto-Complete-Systems-Limited.html

Much smaller than DealerMine.  This one appears to be intended to open up the independent (as opposed to franchised) dealer market.


wisowis

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Re: QIS.v - Quorum Information Technologies
« Reply #72 on: September 07, 2019, 11:08:09 AM »
Figured I would bump this since they now have ~6 months of operations under their belt with their new acquisitions. SaaS revenue is up 98% yoy, but stock price is up 50%, so it is now sitting at 2.5x SaaS revenue (based on $22.3 million SaaS revenue run rate). They now have >1000 unique customers.

You can check out the highlights here: http://1ptzxx15cz712470mu46qduu-wpengine.netdna-ssl.com/wp-content/uploads/securepdfs/2019/08/Q2-2019-FACT-SHEET-FINAL-1.pdf


wisowis

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Re: QIS.v - Quorum Information Technologies
« Reply #73 on: October 27, 2019, 07:23:45 AM »
Looks like they are raising money through a bought deal.

Quote
Quorum Announces Upsized Bought Deal Financing to $8 Million

CALGARY, Oct. 18, 2019 /CNW/ - Quorum Information Technologies Inc. (TSX Venture: QIS) ("Quorum" or the "Company"), a leading provider of dealership and customer management software and value-added services to the automotive industry, is pleased to announce that in connection with its previously announced bought deal financing, the Company and a syndicate of underwriters led by Cormark Securities Inc. (collectively the "Underwriters") have agreed to increase the size of the previously announced financing. The Company will now issue 9,195,500 common shares (the "Shares") of the Company at a price of $0.87 per Share (the "Issue Price"), representing gross proceeds to the Company of approximately $8.0 million (the "Offering"). The Company and the Underwriters have also agreed to increase the Underwriters' option (the "Option") to sell up to an additional 15% of the Offering at the Offering Price if the Option is exercised in its entirety, for aggregate gross proceeds of approximately $9.2 million.

I am not sure diluting shareholders by ~15% is the right move at this valuation, seems like expensive capital to raise. Curious to hear from management what they'll spend that capital on.