TORONTO, Oct. 3, 2016 /CNW/ - Pivot Technology Solutions
(TSX-V: PTG) today announced it has acquired all shares of TeraMach
Technologies Inc., a leading Canadian provider of information
technology products and services.
Terms of the acquisition were not disclosed but TeraMach is a
profitable and growing private company with annual revenues of
approximately $100 million and gross
margins that are similar to Pivot's. This was an all-cash
transaction financed by way of Pivot's existing borrowing
facilities.
Headquartered in Ottawa and
founded in 1996, TeraMach has achieved significant growth by
addressing the specialized IT needs of a wide spectrum of
enterprise customers, including various levels of government in
Canada. TeraMach will operate
under the brand TeraMach, A Pivot Company.
Together, Pivot and TeraMach offer an extensive portfolio of
solutions from strategic technology partners that enables data
center transformation, collaboration, cloud, end-user compute,
security and networking. These solutions are backed by a
comprehensive delivery model that includes advisory-consulting,
implementation, integration and managed services. TeraMach plans to
introduce Pivot's services capabilities to its existing customers,
giving them access to Pivot's full portfolio of offerings.
"Canada is a strategic market
for Pivot and TeraMach is the perfect company for us as we continue
to expand in North America," said
Kevin Shank, Pivot President and
Chief Executive Officer. "In addition to proven leadership,
TeraMach has an excellent reputation, strong brand name and a
knowledgeable team of dedicated IT professionals who serve a great
roster of valuable customers. We believe we can add value to
TeraMach's accounts with our services portfolio and grow together
in Canada by adding more
capabilities around their core business."
As part of Pivot, TeraMach gains access to valued new technology
partners, which only serves to strengthen their leadership position
and adds volume to existing vendor relationships.
"Joining Pivot is strategic to us as it will enable TeraMach to
offer more services as a larger, more resourceful and certainly
more competitive enterprise," said Hunter
Li, TeraMach's co-founder and CEO. "We see this as a
catalyst to grow to the next level as a differentiated IT provider
and we're particularly excited about the services portfolio
approach that Pivot is developing. We believe it is well aligned
with current trends in the marketplace and it will add considerable
value to our relationships with current customers and
partners."
In welcoming TeraMach's highly skilled people, loyal customers
and innovative vendor partners to Pivot, Mr. Shank also underscored
the "tremendous value that we will derive from the fact that
TeraMach's current leadership team will remain with the business to
direct our Canadian growth and customer service strategies." Mr. Li
will remain President of TeraMach.
To realize the full value of the combined business, "the two
organizations will share best practices and coordinate sales and
service efforts," said Brian Kyle,
Chief Financial Officer of Pivot. "There is no duplication between
our businesses, they are entirely complementary and synergistic,
but we firmly believe we can create additional value by
coordinating efforts and leveraging our existing asset to address
TeraMach's customer needs."
About TeraMach
Since 1996, TeraMach has worked with
organizations across Canada to
implement proven, scalable technology solutions. Our focused
approach and agility to address new challenges allow us to deliver
flexible solutions that customers can trust. For more information,
visit www.teramach.com.
About Pivot Technology Solutions
Together with its
portfolio companies and partners, Pivot delivers solutions that
enable organizations to design, build, implement and maintain
computing and communication infrastructure that addresses their
unique business needs. Pivot's approach supports improvement of
business performance, helps organizations reduce capital and
operating expenses and accelerates the delivery of new products and
services to end-customers. With over 2,000 customers, many of
whom are Fortune 1000 companies, Pivot extends its value-added
solutions to help organizations of all sizes improve operating
efficiency, reduce complexity and enhance service delivery through
virtualization and cloud computing. Pivot enables businesses
to extend their enterprise through mobility solutions to better
connect business partners and customers. Pivot has offices
throughout North America and can be found online
at www.pivotts.com.
Forward Looking Statements
This news release
contains statements that, to the extent they are not recitations of
historical fact, may constitute "forward-looking statements" within
the meaning of applicable Canadian securities laws. Forward-looking
statements include statements regarding growth and value creation
opportunities available through the acquisition of TeraMach and the
assumptions underlying any of the foregoing. Pivot uses words such
as "may", "would", "could", "will", "likely", "expect", "believe",
"intend", "anticipate" and similar expressions to identify
forward-looking statements. Any such forward-looking statements are
based on assumptions and analyses made by Pivot in light of its
experience and its perception of historical trends, current
conditions and expected future developments, including the
assumption that by co-ordinating efforts, relationships and assets
with TeraMach, Pivot will create additional value for its business,
and that the general business climate will not deteriorate, as well
as other factors Pivot believes are appropriate under the relevant
circumstances. However, whether actual results and developments
will conform to Pivot's expectations and predictions is subject to
any number of risks, assumptions and uncertainties. Many
factors could cause Pivot's actual results to differ materially
from those expressed or implied by the forward-looking statements
contained in this news release. These factors include, without
limitation: uncertainty in the global economic environment; delays
in integration of TeraMach within Pivot's operations; delays in the
purchasing decisions of Pivot's and TeraMach's customers; the
competition Pivot and TeraMach face in their industry and/or
marketplace; the possibility of technical, logistical or planning
issues in connection with the deployment of Pivot's and TeraMach's
products or services; the possibility that TeraMach's results of
operations for future periods will be less than for its most recent
period; the risk that costs of integration will negatively impact
Pivot's results of operations; the possibility that Pivot will not
be able to further align its support functions with the selling and
delivery arms of the business; the possibility that Pivot will be
unable to capitalize on opportunities it has identified in the
manner and timeframe anticipated, and the possibility that Pivot
will not be able to successfully sustain growth or grow its
profitability. The "forward-looking statements" contained
herein speak only as of the date of this news release and, unless
required by applicable law, the Company undertakes no obligation to
publicly update or revise such information, whether as a result of
new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Pivot Technology Solutions, Inc.