MONTREAL, Dec. 2, 2024
/PRNewswire/ - Alithya Group inc. (TSX: ALYA) ("Alithya") is
pleased to announce the acquisition of XRM Vision for a purchase
price of up to C$35 million, payable
in cash and Class A subordinate voting shares ("Class A Shares"),
including a potential earnout.
XRM Vision is a recognized Microsoft partner, specializing in
creating and implementing Customer Relationship Management (CRM)
and Project Portfolio Management solutions, powered by Microsoft
Dynamics 365, Microsoft Power Platform and other Microsoft
technologies. With a team of about 85 specialists, XRM Vision
operates from locations across Canada and Morocco.
Key acquisition building blocks aligned with Alithya's growth
strategy:
- Industry knowledge and expertise:
- Enhances Alithya's focus on higher value service
offerings.
- Supports Alithya's industry strategy to focus on financial
services and insurance, manufacturing, healthcare, and public
sector.
- Provides new entry points to cross-sell other Alithya
solutions and services into XRM Vision's client base.
- Asset-based solutions:
- Adds new asset-based solutions to Alithya's portfolio
designed to centralize and streamline project management and
financial oversight for project managers and finance
departments.
- Market-leading partners:
- Expands Alithya's Microsoft practice, which already
includes more than 250 experts in North
America and Morocco.
- Increases capacity to deliver Microsoft Dynamics 365 CRM,
Project Operations and Project and Planner solutions.
- Deepens expertise in Microsoft Power Platform, including
Microsoft Power Automate and Microsoft Power Apps.
- Improves ability to deliver end to end agile process
improvements through process mining and Microsoft Copilot
agents
- Strengthens Microsoft Copilot training and support
offerings.
- Cost-effective smart shoring capabilities:
- Broadens Alithya's existing delivery capabilities in
Morocco.
Quote by Paul Raymond,
President and CEO of Alithya:
"We are delighted to welcome Félix Robitaille, XRM Vision's
leader, and the whole team to the Alithya family. This acquisition
is aligned with our strategic plan to find niche companies focused
on higher value and complementary services for our clients. The
integration of XRM Vision complements our commitment to asset-based
solutions within our core industry verticals, reinforcing our focus
on smart shoring capabilities."
Quote by Bernard Dockrill,
Chief Operating Officer of Alithya:
"I look forward to working with Félix and his high-performing
team. This acquisition brings their talented Microsoft
focused experts into our fold, while uniting two top Microsoft
Dynamics partners, empowering Alithya to capitalize on global
market opportunities. This acquisition adds to our smart-shoring
footprint in Canada and in
Morocco, driving greater
efficiencies and accessing a wider talent pool. Finally, XRM
Vision's accelerators, designed to bridge the gap between finance
and project teams by securely automating and streamlining the
financials reconciliation process, are an excellent complement to
our existing solutions."
Quote by Félix Robitaille, CEO of XRM Vision:
"I am thrilled that XRM Vision is joining Alithya. Our team's
deep expertise in Microsoft Dynamics Customer Experience (CE) and
Project Operations will complement Alithya's existing capabilities
and enlarge our capacity by changing the world one project at a
time. Building on over fifteen years as a Microsoft partner, this
will also provide our team members with career growth opportunities
at Alithya. Our clients will benefit from Alithya's extensive
service offerings and proprietary solutions. This transaction truly
positions us to fully capitalize on Alithya's scale to continue our
trajectory of innovation and excellence."
Acquisition terms
Subject to the conditions and adjustments set out in the
purchase agreement, the purchase price comprises (i) a cash
consideration of C$8.625 million payable at closing; (ii) a
share consideration of C$5.75 million, payable by the issuance
of 3,449,103 Class A Shares of Alithya at closing; and (iii) a
deferred cash consideration of C$8.625 million payable over three years on
each anniversary date of the closing.
The purchase price also includes a potential earnout payment of
up to C$12 million, contingent upon
the future financial performance of the acquired business over a
consecutive 12-month period within the 18 months following the
closing. Twenty-five percent (25%) of the earn-out will be payable
in shares and the balance in cash. The purchase price, including
all closing payments, deferred anniversary payments, and the
earnout, is capped at C$35
million.
The number of Class A Shares issued as share consideration at
closing was calculated using a share price of C$1.6671, being
the volume weighted average price ("VWAP") of the Class A Shares
for the 15 trading days ended on and including
November 28, 2024. The number of
Class A shares issuable as part of the earnout will be determined
by dividing the earnout amount payable in Class A Shares by the
VWAP for the 15 trading days ending on and including the date that
is two business days prior to the payment date of the earnout.
About Alithya
Empowered by the passion and enthusiasm of a talented global
workforce, Alithya is positioned on the crest of the digital wave
as a trusted advisor in strategy and digital technology services.
Transforming the world one digital step at a time, Alithya
leverages collective intelligence and expertise to develop
practical IT solutions tailored to complex business challenges. As
shared stewards of its clients' success, Alithya accompanies them
through the full cycle of their digital evolutions, paving new
roads to the future of their businesses.
Living up to its name, meaning truth, Alithya embraces a
business model that avoids industry buzzwords and technical jargon
to deliver straight talk provided by collaborative teams focused on
three main pillars: strategic consulting, enterprise
transformation, and business enablement.
With gender parity and carbon care certifications already
obtained, and in pursuit of indigenous relations and carbon neutral
certifications, Alithya strives to balance its desire to do the
right thing with its commitment to doing things right.
Forward-looking statements
This press release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities laws and "forward-looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and other applicable U.S. safe harbours (collectively
"forward-looking statements"). Statements that do not exclusively
relate to historical facts, as well as statements relating to
management's expectations regarding the future growth, results of
operations, performance and business prospects of Alithya, and
other information related to Alithya's business strategy and future
plans, or which refer to the characterizations of future events or
circumstances represent forward-looking statements. Such statements
often contain the words "anticipates," "expects," "intends,"
"plans," "predicts," "believes," "seeks," "estimates," "could,"
"would," "will," "may," "can," "continue," "potential," "should,"
"project," "target," and similar expressions and variations
thereof, although not all forward-looking statements contain these
identifying words.
Forward-looking statements are presented for the sole purpose of
assisting investors and others in understanding Alithya's
objectives, strategies and business outlook as well as its
anticipated operating environment and may not be appropriate for
other purposes. Although management believes the expectations
reflected in Alithya's forward-looking statements were reasonable
as at the date they were made, forward-looking statements are based
on the opinions, assumptions and estimates of management and, as
such, are subject to a variety of risks and uncertainties and other
factors, many of which are beyond Alithya's control, and which
could cause actual events or results to differ materially from
those expressed or implied in such statements. Such risks and
uncertainties include the possible failure to realize anticipated
benefits of the transaction (including potential synergies), the
integration of XRM Vision's business, the loss of certain key
personnel and clients of XRM Vision, potential undisclosed costs or
liabilities associated with the transaction, and other risks and
uncertainties discussed in the section titled "Risks and
Uncertainties" of Alithya's Management's Discussion and Analysis
for the year ended March 31, 2024 and
Management's Discussion and Analysis for the quarter ended
September 30, 2024, as well as in
Alithya's other materials made public, including documents filed
with Canadian and U.S. securities regulatory authorities from time
to time and which are available on SEDAR+
at www.sedarplus.com and EDGAR at www.sec.gov.
Additional risks and uncertainties not currently known to Alithya
or that Alithya currently deems to be immaterial could also have a
material adverse effect on its financial position, financial
performance, cash flows, business or reputation.
Forward-looking statements contained in this press release are
qualified by these cautionary statements and are made only as of
the date of this press release. Alithya expressly disclaims any
obligation to update or alter any forward-looking statements, or
the factors or assumptions underlying them, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Investors are cautioned not to place undue reliance
on forward-looking statements since actual results may vary
materially from them.
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SOURCE Alithya Canada inc.