I will provide relevant facts and dates before I provide my comments re acquisition.
Aug 16 ETC enters agreement to acquire ETC.
Sept 2021 Completes agreement
Oct 4 2021 Adds Veteran Darby Swank
point 1- On completion of agreement QTRH stated they expected EBITDA to be in annual range
12 to15 Millionl. ETC has been in tolling business for over 20years and financial statements on record. Financial statements on hand for last 3 years and so I find very
difficult to doubt their due diligence. With 15 million EBITA acquisition, this is 10 times
and very resonable, if not low for industry.
Point 2. Aug 16 we entered agreement to acquire,and it is fact before agreement entered important details had to be finalized. The most important detail in my opinion was continuity of top management. . In this regard QTRh negotiated a long term contract with Bret Kidd and his management. In addition Brett Kidd was given 475,000 options and his senior staff 475,000 options of QTRH. Top management is key todeal.
Point 3. Adds Veteran Darby Swank- We entered agreement Aug16 and presumably negotiations started 2 months before approx June 16. Darby Swank promoted in Kapsch in May 2021. So it appears that acquisition of Darby was not in plans to enter
agreement to acquire ETC. On Oct 4/2021 ETC signs contract to acquire Darby and
Brett Kidd states he is trilled to have Darby on ETC. Just few points of many re Darby.
Darby has 20 years of expertise in ITS & mobility industry and Darby is Longtime member of FINANCE COMMITTE FOR INTERNATIONAL BRIDGE & TURNPIKE AUTHORITY.
Point 4 -Future Income--7 plus 3 year for Louisville - Ohio Bridge announced in Sept 2020
Q3 Paul stated awarded 3 contracts of 10 year nature and currently in protest stage.
New Regional roadway in NW Chicago expected to open in 2022. Crosses 5.6 miles in length to alleviate traffic in Kane county.
Point 5 Brett Kidd is listed as Executuve Management of QTRH.
Further with respect to our ITS , we have IRD rolling at high gears with record backlog and EPIDTA.