Source: NowVertical Group Inc.
  • NowVertical Group (NOW) has closed its previously announced acquisition of Allegient Defense
  • The closing coincided with the securing of a $5,800,000 credit facility with US-based MVB Bank
  • The facility provides increased flexibility for meeting working capital requirements
  • NOW acquired all issued and outstanding securities of Allegient for total aggregate consideration of $10.4 million
  • Allegient Defense is an advisor and partner to the U.S. Federal Government
  • NowVertical Group Inc. was trading at $0.93, with a 4.494 per cent gain as at 1:46 PM ET

NowVertical Group (NOW) has closed its acquisition of all issued and outstanding securities of Allegient Defense, Inc.

This follows the receipt of approval from the Committee on Foreign Investment in the United States (CFIUS).

The closing of the acquisition coincided with the securing of a $5,800,000 credit facility with US-based MVB Bank. This credit facility comprises a $3,800,000 term loan that will bear interest at the 5-year treasury rate + 3.25 per cent (with a floor of 4.5 per cent) and a $2,000,000 revolving line of credit that will bear interest at the WSJ Prime Rate plus 0.25 per cent (with a floor of 3.5 per cent).

The facility provides increased flexibility for meeting working capital requirements.

“Allegient’s positive history of contract performance with the highest level of U.S. Federal Government customers, excellent management and administrative team and infrastructure mark a critical and exciting expansion of NOW’s public sector capabilities and offering,” stated Daren Trousdell, Chairman & CEO of NOW. “

“We are also thrilled to consider MVB Bank, which chose to finance this transaction in part, given Allegient’s history of positive performance and profitability, as one of our new and trusted stakeholders,” he added.

“The resources and strength of NOW will allow Allegient to enter our next chapter of growth while maintaining our reputation for unparalleled customer service through our unwavering dedication to solving the complex challenges facing our customers,” said Angel Diaz, PMP, CEO of Allegient.

NOW acquired all issued and outstanding securities of Allegient for total aggregate consideration of $10.4 million.

Allegient Defense is an advisor and partner to the U.S. Federal Government, providing technical expertise related to cloud computing, data analytics, artificial intelligence/machine learning, directed energy, autonomous aerial vehicles, and next-generation weapons systems.

NOW is a data, analytics and vertical intelligence software and services company that is growing organically and through acquisition.

NowVertical Group Inc. was trading at $0.93, with a 4.494 per cent gain as at 1:46 PM ET.

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