Quorum Announces Acquisition of VINN Automotive Technologies Limited
June 27 2023 - 9:00AM
Quorum Information Technologies Inc. (TSX-V: QIS) (OTC Pink: QIFTF)
(“Quorum”), a North American SaaS Software and Services company
providing essential enterprise solutions that automotive
dealerships and Original Equipment Manufacturers (“OEMs”) rely on
for their operations, is pleased to announce that it has closed the
arms-length acquisition (the “Transaction”) of VINN Automotive
Technologies Limited (“VINN”) - New & Used Cars for Sale |
VINN. VINN is Quorum’s fifth acquisition in six years and marks
another step forward in Quorum’s strategy to be a full-service
provider to automotive dealerships.
VINN is a premier automotive marketplace that
streamlines the vehicle research and purchase process for vehicle
shoppers while helping retailers sell more efficiently. VINN
provides a 5-star Google rated concierge service that assists
consumers through the complex vehicle sales process. With key
infrastructure already in place and by utilizing the strength of
Quorum’s 1,433 dealership customers, Quorum expects the acquisition
to be accretive and profitable in the first year.
Key strategic reasons for this Transaction
include:
- VINN
provides dealerships with valuable, qualified sales leads and
Quorum’s integrated sales tools will ensure dealerships achieve a
high lead close percentage.
- Quorum’s
MyDeal product will transform VINN into a digital retailing
marketplace.
- VINN’s
5-star concierge service can open new revenue streams for both
Quorum and the dealership such as reanimating dealerships’ old
sales leads to close missed sales opportunities.
- Quorum
plans to leverage VINN’s $9.6 million of non-capital tax loss carry
forwards.
Consideration for the Transaction is $0.75
million in cash with an 80% holdback pursuant to the terms of the
Share Purchase Agreement. Quorum will utilize current cash reserves
to fund the cash consideration.
“The VINN team has developed a state-of-the-art
automotive marketplace and we look forward to working together to
scale the business. We extend a warm welcome to the existing,
valued VINN dealership customers and stand committed to expanding
the number of quality sales leads we provide you,” stated Maury
Marks, Quorum’s President and CEO. “The VINN marketplace will
complement our dealership vehicle sales solutions as we continue to
build our product suite capability beyond our DMS solution.”
“Quorum’s experience partnering with 1,433
dealerships across North America provides a logical home for the
tools we’ve built at VINN,” stated VINN CEO Caleb Bernabe. “We’re
excited to see our solutions continue to scale to vehicle shoppers,
and the ability to further integrate with Quorum’s product suite
offers the potential for VINN to deliver a best-in-class consumer
experience.”
About Quorum Information Technologies
Inc.
Quorum is a North American SaaS Software and
Services company providing essential enterprise solutions that
automotive dealerships and Original Equipment Manufacturers
(“OEMs”) rely on for their operations, including:
- Quorum’s
Dealership Management System (DMS), which automates,
integrates, and streamlines key processes across departments in a
dealership, and emphasizes revenue generation and customer
satisfaction.
-
DealerMine CRM, a sales and service Customer
Relationship Management (“CRM”) system and set of Business
Development Centre services that drives revenue into the critical
sales and service departments in a dealership.
-
Autovance, a modern retailing platform that helps
dealerships attract more business through Digital Retailing,
improve in-store profits and closing rates through its desking tool
and maximize their efficiency and CSI through Autovance’s F&I
menu solution.
-
Accessible Accessories, a digital retailing
platform that allows franchised dealerships to efficiently increase
their vehicle accessories revenue.
Quorum Information Technologies Inc. is traded
on the TSX Venture Exchange (“TSX-V”) under the symbol QIS. For
additional investor information, please visit
www.QuorumInformationSystems.com.
Contacts:
Maury MarksPresident and Chief Executive
Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Daniela TrnkaInvestor
Relations403-777-0036Daniela.Trnka@QuorumInfoTech.com
Forward-Looking Information
This press release may contain certain
forward-looking statements and forward-looking information
(“forward-looking information”) within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but
not always, identified by the use of words such as “anticipate”,
“believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”,
“estimate”, “expect”, “may”, “will”, “project”, “should” or similar
words suggesting future outcomes. Quorum believes the expectations
reflected in such forward-looking information are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Forward-looking information is not a guarantee
of future performance and involves a number of risks and
uncertainties some of which are described herein. Such
forward-looking information necessarily involves known and unknown
risks and uncertainties, which may cause Quorum’s actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking information.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) has reviewed this release and neither accepts
responsibility for the adequacy or accuracy of this release.
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