Calian continues its aggressive acquisition strategy with the takeover of Dapasoft. Dapasoft, a Microsoft Gold Partner, and its wholly owned subsidiary, iSecurity, came together in 2019 to provide full-service cloud lifecycle management and cybersecurity solutions. Their Corolar integration engine has been deployed in over 30 healthcare institutions across Canada, and their proprietary cybersecurity solutions are used by customers in healthcare, financial services and critical infrastructure across North America.
Highlights include:
- Transaction represents Calian's largest acquisition to date
- Transaction value of up to $83M; $50M at closing represents an EBITDA multiple of 8.0x based trailing performance
- Facilitates Calian's next chapter of growth and expands its opportunity to further bolster the delivery of its Healthcare, IT Services and Cybersecurity solutions to its clients
- Multiple cross-sell and up-sell opportunities across combined client base
- Increases Calian's recurring revenue base
- Immediately accretive on an EBITDA and Adjusted Net Income basis
The acquisition of Dapasoft and its subsidiary, iSecurity, aligns with two pillars of the Calian growth strategy: Customer Diversification and Innovation. The definitive agreement is valued at up to CDN$83M. Amount paid on closing is $50M, consisting of $43M cash and $7M in Calian shares. Contingent consideration over two years is based on certain EBITDA growth targets ($14.5M payable in cash and $18.5M payable in Calian shares).
The combined entities generated revenues of $27M in their most recent fiscal year, with Gross Margin and EBITDA p ercentages well above Calian's consolidated levels. The Company expects this transaction to be immediately EBITDA accretive.
Calian 2021 guidance increased as follows:
Previous:
Revenue Range: $460,000 - $500,000
Adjusted EBITDA: $42,250 - $45,750
Adjusted net profit: $27,450 - $30,550
New
Revenue Range: $476,000 - $516,000
Adjusted EBITDA: $45,000 - $49,000
Adjusted net profit: $29,350 - $32,650
New guidance reflects one-time transaction costs. Gotta love acquisitions that are immediately accretive to the top and bottom lines.
-GBG