CALGARY, AB, Oct. 18, 2021 /PRNewswire/ - Sylogist
Ltd. (TSX: SYZ) ("Sylogist" or the "Company") is
pleased to announce the acquisition of The Pavlik Group Inc. and
affiliated entities ("Pavliks"), a provider of proprietary SaaS
applications and professional services primarily to public sector
organizations and member associations. Pursuant to the transaction,
which closed on October 18th, 2021,
Sylogist acquired all the shares of Pavliks for $11.5 million (CAD), subject to working capital
adjustments. With historical growth averaging 20% per year, Pavliks
is tracking toward current year revenue of $9.4 million and Adjusted EBITDA of $1.6 million, materially expanding Sylogist's
scale and growth profile.
The Portal Connector ("TPC") business unit offers a fast
growing, modern, low/no code, acclaimed solution enabling clients
to build and integrate customer-facing web applications with
Microsoft Dynamics. This innovative TPC solution has grown in
excess of 40% annually in recent years to now generate
approximately one third of Pavliks' total revenue from a global
clientele, including marquee customers such as the Australian
federal government. Sylogist plans to fast-track TPC's
out-of-the-box integration beyond Microsoft databases and invest in
its direct and channel sales capacity to enhance its already
impressive growth. In addition, TPC presents material cross-sell
and add-on platform enhancement opportunities across the entire
Sylogist customer base. Pavliks' other business units include
expert Microsoft Dynamics development and implementation services
focused mainly on public sector entities and member associations,
and managed services, including coveted cybersecurity and cloud
productivity. All Pavliks' activities are highly strategic and
synergistic with Sylogist's platform offerings and growth
strategy.
Bill Wood, Sylogist's President
and CEO, stated: "We are delighted to welcome Pavliks customers and
team members to our growing Sylogist family. This acquisition is
immediately accretive, and brings to Sylogist near-term enhanced
scale, organic growth, cash flows, and exciting strategic IP and
value creation upside as our businesses are immediately stronger
together.
In the last 7 months, Sylogist has acquired 3 highly strategic
and growing businesses, driving 50% run-rate revenue gains relative
to FY2020. The acquisition of Pavliks is another example of our
ability to source and close attractive deals, execute our M&A
growth strategy, and is indicative of increasing momentum across
the business. I am pleased with the organic and inorganic value
creation traction we're seeing and the exciting growth path we are
on," concluded Mr. Wood.
Ian Pavlik, President of Pavliks,
stated: "My family knew that we could only sell our company to
someone who would prioritize its customers, invest in its people,
and bring the expertise and resources necessary to take it to the
next level. Having now discussed and worked extensively with Bill
and the Sylogist management team, I have complete confidence that
they are the right partner to achieve these objectives and take it
to new heights."
The current Pavliks' management team will continue to lead its
daily operations, reporting into the Sylogist executive team; with
Ian Pavlik serving as General
Manager, reporting directly to Sylogist CEO, Bill Wood.
About Sylogist
Sylogist is a public sector SaaS company that provides
comprehensive ERP, CRM, fundraising, education administration, and
payments solutions that allow its customers to carry out their
missions. It serves over 1,700 customers globally, including all
levels of government, non-profit and non-governmental
organizations, educational institutions, and public
compliance-driven and funded companies. The Company has
industry-leading profitability, an exceptionally strong balance
sheet, a track record of successful acquisitions, and a portfolio
of mission-critical SaaS solutions. Full financial statements
together with Management's Discussion and Analysis are available on
SEDAR at www.sedar.com.
The Company's stock is traded on the TSX Exchange under the
symbol SYZ. Information about Sylogist can be found at
www.sylogist.com.
About Pavliks.com
Pavliks is a technology company, with over 50 employees and 230
customers, that provides robust web portal solutions, Microsoft
Dynamics implementation and customization, and managed IT services
to public and private sector organizations globally. Its
proprietary IP, Dynamics expertise, and deep community roots allow
it to serve its customers, both directly and through a network of
resellers. The company has a talented team, robust technology, and
strong growth prospects.
Pavliks is a division of Sylogist. Information about the company
can be found at www.pavliks.com
Forward-looking Statements
Certain statements in this news release may be
forward-looking statements within the meaning of applicable
securities laws and regulations. These statements typically
use words such as expect, believe, estimate, project, anticipate,
plan, may, should, could and would, or the negative of these terms,
variations thereof or similar terminology. Forward-looking
information in this news release includes statements with respect
to Pavliks.com's revenue and EBITDA in the current fiscal year,
TPC's growth rate, Sylogist's plans to fast-track TPC's
out-of-the-box integration and invest in its sales capacity, TPC's
cross-sell and platform enhancement opportunities, the strategic
and synergistic nature of Pavliks' business units, the accretive
nature of this acquisition and its organic growth and value
creation upside, and Sylogist's future value creation, and organic
and inorganic growth. By their very nature, forward-looking
statements are based on assumptions and involve inherent risks and
uncertainties, both general and specific in nature. It is therefore
possible that the beliefs and plans and other forward-looking
expectations expressed herein will not be achieved or will prove
inaccurate. Although Sylogist believes that the expectations
reflected in these forward-looking statements are reasonable, it
provides no assurance that these expectations will prove to have
been correct. 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, including headwinds from COVID-19 and economic
turmoil, competitive threats to innovation or Sylogist's inability
to invest and add expertise, and market uptake of Sylogist
products. Additional information regarding some of these risks,
uncertainties and other factors may be found in the Company's
Annual Information Form for the fiscal period ended September 30, 2020, and in the management's
discussion and analysis for the three months ended June 30, 2021, and other documents available on
the Company's profile at www.sedar.com. Material assumptions and
factors that could cause actual results to differ materially from
such forward-looking information include Sylogist's ability to
attract and retain customers and to realize on its investments.
Although Sylogist 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.
Sylogist disclaims any intention or obligation to update or revise
any forward-looking information, whether because of new
information, future events or otherwise, other than as required by
law.
Certain information set out herein may be considered as
"financial outlook" within the meaning of applicable securities
laws. The purpose of this financial outlook is to provide readers
with disclosure regarding Sylogist's reasonable expectations as to
the anticipated results of its proposed business activities for the
periods indicated. Readers are cautioned that the financial outlook
may not be appropriate for other purposes.
Non-GAAP Financial Measures
Adjusted EBITDA, is a non-GAAP financial
measures. Adjusted EBITDA is defined as: profit for
the period before stock-based compensation, share-based payments,
foreign exchange gains or losses, interest expense, bargain
purchase price on acquisition, income taxes, acquisition-related
costs, depreciation and amortization.
This news release makes reference to certain non-GAAP
measures. These measures are not recognized measures under Canadian
GAAP, do not have a standardized meaning prescribed by Canadian
GAAP and are therefore may not be comparable to similar measures
presented by other issuers. These measures are provided as
additional information to complement measures under GAAP by
providing further understanding of the Company's expected results
of operations from management's perspective. Accordingly, such
measures should not be considered in isolation nor as a substitute
for analysis of the Company's financial information reported under
Canadian GAAP.
Adjusted EBITDA is provided to investors
as an alternative method for assessing the Company's
operating results in a manner that is focused on the Company's
ongoing operations and to provide a more consistent basis for
comparison between periods. This measure should
not be construed as an alternative to net
profit (loss) or cash flow from operating activities determined in
accordance with GAAP as an indicator of the Company's performance.
For further information regarding non-GAAP measures used by the
Company, please refer to the management's discussion and analysis
of the Company, copies of which are available on Sylogist's SEDAR
profile at www.sedar.com.
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SOURCE Sylogist Ltd.