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.
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