Another Acquisition - Let's see how the market reacts This transaction involved a purchase by Sangoma of 100% of the outstanding equity in NetFortris.
The Upfront Consideration of USD $68 million was satisfied through a combination of cash and Sangoma common shares. The upfront cash amount was USD $48.8 million and the upfront equity amount was USD $19.2 million. Based upon the fixed, upfront portion of the purchase price, the implied valuation is approximately 1.3x expected annualized revenue.
The cash portion of the Upfront Consideration was funded through a combination of cash on hand and, to minimize dilution, an amended credit facility with its existing lenders. Sangoma will have approximately USD $110 million of debt on a pro-forma basis, equating to approximately 2.3x pro-forma net debt to Adjusted EBITDA. The equity portion of the Upfront Consideration was satisfied by issuing approximately 1.5 million common shares of Sangoma, and such number of common shares issued was based on the fifteen (15)-day volume weighted average price of Sangoma's common shares as of March 25, 2022.
GLTA