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Quisitive Technology Solutions Inc V.QUIS

Alternate Symbol(s):  QUISF

Quisitive Technology Solutions, Inc. is a global Microsoft partner leveraging the Microsoft cloud platform and artificial intelligence, alongside custom and proprietary technologies. The Company's cloud segment solution segment delivers technical cloud and business solutions to help customers achieve their business goals. It harnesses the Microsoft platform and complementary technologies, including custom solutions and first-party offerings, to generate meaningful impact for midsize and enterprise customers. Its cloud solutions business focuses on helping enterprise move to, operate within, and innovate via modern development in the three Microsoft clouds (Azure, Microsoft 365, Dynamics 365). Its segment includes technology services, including those addressing infrastructure, data, analytics, security, digital workplace, application development, and business applications service that apply the benefits of technology to solve business needs and help customers meet their goals.


TSXV:QUIS - Post by User

Post by savyinvestor333on Mar 29, 2021 5:48pm
146 Views
Post# 32900997

Beacon Report from Mar 22 Before this Deal

Beacon Report from Mar 22 Before this DealMaking Use Of Its War Chest - Quisitive announced that it has signed a definitive agreement to acquire Mazik Global Inc.

Chicago-based Mazik is an independent software vendor that helps companies deploy Microsoft CRM, Cloud and ERP solutions to the healthcare, education and manufacturing industries. - Mazik has partnered with Microsoft engineering for nearly two decades and creates flexible, extensible artificial intelligencedriven solutions. Most notably, the company has developed a valuable set of IP that serves the healthcare, education, and manufacturing industries. In particular, Mazik’s health cloud platform, MazikCare, offers a set of robust healthcare-ready business solutions that enhance end-to-end business operations for medical teams and patients.

- More recently, Mazik extended the MazikCare platform to include its VaccineFlow solution to deliver critical, mass COVID-19 vaccination across the world, with 1 million+ vaccinations administered via the platform already. MazikCare VaccineFlow unifies the process of vaccine distribution and solidifies the relationship between providers, patients, and distributors representing a tremendous growth opportunity.

- Quisitive is paying $7M in cash and issuing 6,254,020 shares. Based on Friday’s close of C$1.47/sh ($1.18/sh), that would imply total consideration of ~14.4M. Mazik’s TTM (ending December) revenues and EBITDA were $10.4M (~25% recurring) and $2.1M (20% EBITDA margins), which implies a takeout valuation of ~1.4x sales and ~6.9x EBITDA. There is also a 3-year earnout. The amount of the earnout is a base maximum of $6M payable in cash, plus an additional incentive amount of $2M based on exceeding recurring revenue growth targets, payable in cash or shares at QUIS’ option. To realize the full performance earnout Mazik revenues will have grown 110% over 3 years and recurring revenues 250%. The deal is expected to close around April 1st .

- Overall, we view this as a positive transaction, which should be immediately accretive and funded with cash on hand (recall the company recently received a strategic investment from FAX Capital of C$20M [i.e. 16M shares at C$1.25/sh]). We estimate proforma cash now stands at ~$21.3M against debt of ~$18.3M.

- Beyond M&A, we believe the next main catalysts will be additional milestone updates on LedgerPay, including a definitive agreement on bank sponsorship, along with Visa/Mastercard certification. We are maintaining our Speculative Buy rating, but increasing our target price to C$1.70 (was C$1.10), which is based on our sum-of-parts valuation.
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