From time to time, I like to go back and re-read material. For anyone relatively new to QTRH, and even long term investors like me, Paul Hill's opening comments on 10-Nov-2021 are instructive on the future of QTRH. "Q3 consolidated revenue was CAD 36.3 million and consolidated adjusted EBITDA was CAD 7.6 million. We ended the quarter with CAD 60 million of working capital. And subsequent to quarter end closed a CAD 57.5 million convertible debenture that was oversubscribed and included the full overallotment options.
The key highlight in Q3 was the acquisition of ETC, an ITS leader in tolling in the US market. The transaction has transformed Quarterhill into a major player in the ITS industry and ETC fit perfectly with our M&A strategy for several reasons. It establishes Quarterhill as a leader in the tolling vertical, which has strong market tailwinds. It's a second ITS platform for tuck-in acquisitions and a sister organization to IRD.
ETC has an experienced management team that is targeting a CAD 4 billion pipeline of sales opportunities. There are good long-term revenue synergy opportunities between ETC and IRD. And it transforms the financial profile of Quarterhill to a predominantly ITS company with more visible and predictable financials.
In Q3 just prior to the acquisition, ETC signed a 10-year contract to provide its back-office ERP solution to the Ohio River Bridges authority. The new system will streamline billing, improve ease of self-service and facilitate quick issue resolution for their customers. The 10-year contract is valued at approximately CAD 100 million and includes systems design, implementation and seven years of toll service operations. Two optional three-year renewal periods could increase the value of the agreement significantly.
In addition, there is potential for expansion for change orders during the 10-year contract period, which could further increase the lifetime contract value. ETC continues to make good progress on its pipeline and we hope to be in a position to announce new wins in Q4. The process from any of these contract awards is that after an RFP period a short list of vendors is chosen and then from that list of vendors selected, a protest period of about two weeks follows. Should the protest period pass without issue, the selected vendor enters a period where final terms of the contract are negotiated.
As a general practice, we will not make a formal announcement until the final contract is signed. That being said, I can tell you that ETC is currently approaching that final contract negotiation phase for three new opportunities that have an average term including option periods of 13 years. As these deals get closed we will announce contract values if it's permitted. Again, while they are not yet completed agreements these opportunities are either sale end of the protest period or in the contract negotiation phase. We expect to have updates on them soon.
As M&A [ph] strategy, we continue to build a strong pipeline and we're seeing a number of high-quality assets of all sides as in attractive valuations. We set out with an ambitious target of deploying CAD 400 million over five years on M&A. And so far in 2021, we've deployed approximately CAD 160 million on three deals.
Our intention is to keep the pace of M&A brisk and we continue to believe there's never been a better time to be an aggregator in the ITS market. The convertible debenture financing completed subsequent to quarter end, provides us with additional flexibility and resources to pursue this strategy. It was a successful CAD 57.5 million financing that involved a syndicate of seven dealers. It was oversubscribed and brought more than a dozen new institutional investors to the Quarterhill story. Increasing our profile in the investment community and raising the level of institutional ownership remain important objectives for us.
IRD had a good quarter with new wins in Illinois, Oklahoma and Idaho. On a year-over-year comparison, IRD was impacted by FX headwinds and COVID-related delays in particular in Latin America, with several projects in the regions were temporarily placed on hold due to lockdowns.
Excluding FX, revenue year-over-year would have been consistent with Q3 last year, despite the COVID delays in Latin America. We expect that FX will normalize in the near-term and that projects on hold will resume in these markets as they open.
The strong fundamentals remain in place at IRD. It had a record quarter for new bookings. It has significant contracted backlog and the tuck-in acquisitions made earlier this year, Sensor Line and VDS are tracking ahead of plan. As we mentioned on our last call, IRD has already had some success bringing Sensor Line products to the US market and the companies are working together on other opportunities both in the US and outside North America.
Finally, IRD has made good progress in appointing a head of its European operations and we expect we will have a person in the seat in January. Establishing this role will help us execute our strategy by strengthening our presence with customers and accelerating both our organic and acquisitive growth in the region.
Q3 was WiLAN's best quarter thus far in 2021, with several license agreements resulting in solid adjusted EBITDA. WiLAN also acquired some patents in the semiconductor space, adding depth in an area of strength for the company. We remain optimistic for Q4. Deals are getting done as we saw in Q3. However, the timing for completing agreements remain variable and COVID is still a hurdle for travel and in-person meetings.
As well, the courts do continue to experience some COVID-related delays as they work through their backlog of cases. Regarding WiLAN's litigation with Apple in the US, the oral hearing of federal appeals court took place in early October. A ruling could take anywhere from a few months to six months.
WiLAN also has ongoing litigation with Apple in Germany with the first of three hearings having taken place in October, a second is set for later this month and a third scheduled for March. WiLAN's pipeline and patent portfolio remains solid and we continue to view the business as a reliable generator of cash flow to support its own expansion objectives as well as our broader ITS M&A strategy.
In closing, we have made significant progress on our M&A strategy this year bringing scale to our ITS business and enhancing Quarterhill's revenue and earnings visibility. We have been working hard to get our story out to the investment community and we continue to do so in the coming quarters. We're encouraged to see some of the results of that effort and the strong interest we had in our convertible debenture offering, which was well oversubscribed. Already we have two institutional investor conferences lined up for January and we'll share more details on those events in the near future."
Source transcript - Seeking Alpha