CALGARY, AB, Oct. 6, 2021 /PRNewswire/ - Sylogist Ltd. (TSX: SYZ) ("Sylogist" or the "Company"), is pleased to announce the acquisition of MISSION CRM Ltd. ("Mission CRM"), the developer of the Mission CRM fundraising and donor engagement SaaS platform for large and mid-market nonprofit organizations. Pursuant to the transaction, which closed on October 6th, 2021, Sylogist acquired all the shares of Mission CRM for $2.67 million (CAD), approximately 3x trailing annual revenue, subject to working capital adjustments, plus an earnout tied to agreed-upon revenue targets over the next three years. The annual earnout milestones reflect a compound annual growth rate in excess of 100%, with the business achieving more than $8.5 million in annual revenue by the end of the earnout period. Should Mission CRM achieve its earnout milestones, the total purchase price will equal approximately 1x revenue exiting FY2023. Mission CRM's two founders will remain with the company to drive its growth.
Founded in 2016, Mission CRM set out to develop an innovative, 100% SaaS fundraising and donor engagement platform built on a Microsoft Dynamics 365 and Azure foundation; fully embracing the Microsoft Common Data Model ("CDM") for nonprofit and non-governmental organizations. With its latest release in 2020, and unlike other point-solution products in the marketplace, the platform provides seamless constituent engagement, online fundraising and campaign pages, event management, peer-to-peer fundraising, donation processing, funds distribution, postal integrations, and CRA receipting.
Since the commercial release of the Mission CRM platform, 21 high-profile organizations across North America have selected and implemented the solution. As Mission CRM is built on top of Microsoft's Fundraising and Engagement offering and the CDM, it's integrated from the get-go with Microsoft Cloud for Nonprofit. In fact, the company co-developed the initial Mission CRM solution with Microsoft and licensed the platform kernel to Microsoft in 2020 for its use in Microsoft Cloud for Nonprofit. In turn, Mission CRM is the logical and easy upgrade path for organizations needing more functionality than what the Microsoft Fundraising and Engagement offering includes.
Bill Wood, Sylogist's President and CEO stated: "We are very excited to welcome Mission CRM's team and customers to Sylogist. This is a highly strategic deal for both parties. While Mission CRM will continue to be offered as a stand-alone solution, the innovative fundraising platform complements our Serenic Navigator ERP and other IP extraordinarily well. We look forward to offering fully integrated front-end donor engagement, fundraising, grants management, analytics, and back-end financial management and reporting in a single, comprehensive SaaS platform in the near future.
Over the last several months, we have pursued select booking opportunities in partnership with the Mission CRM team, which validated both the attractiveness of their platform and a unified solution. We are confident their fundraising and donor engagement solution offers innovation the market is looking for. In parallel, we initiated discussions with Mission CRM's founders about acquiring their company. With today's announcement, we look forward to launching an aggressive go-to-market campaign as a united team.
Sylogist intends to accelerate and help recognize Mission CRM's exciting growth trajectory. We will provide investment, resources, and expertise to enable rapid scaling on all fronts. This strategic acquisition brings with it strong IP, marquee customers, and an exceptional team, with whom we look forward to realizing the business' full potential." concluded Mr. Wood.
Christina Herancourt, President of Mission CRM, stated: "I am delighted to be joining the Sylogist team. When my co-founder, CJ Brooks, and I established this company, we did so with a goal of helping nonprofits achieve their missions with an innovative donor management platform. Joining forces with Sylogist provides the scale, expertise, and resources to accelerate our growth – even more so with Bill's first-hand knowledge of the space and his learnings from bringing Blackbaud's Raiser's Edge product to market. With cutting-edge technology, a strong team, backing from Sylogist, and alignment across our strategies and organizations, we are very excited about what the future holds."
About Sylogist
Sylogist is a public sector SaaS company that provides comprehensive ERP, CRM, fundraising, education administration, and payments solutions that allow our public sector customers to carry out their missions. We serve over 1,500 customers globally, including all levels of government, non-profit and non-governmental organizations, educational institutions, and public compliance-driven and funded companies. We have a strong balance sheet, industry-leading profitability, a track record of successful acquisitions, and a portfolio of mission-critical SaaS solutions.
Full financial statements together with Management's Discussion and Analysis are available on SEDAR at www.sedar.com.
The Company's stock is traded on the TSX Exchange under the symbol SYZ. Information about Sylogist can be found at www.sylogist.com.
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