- Software company, Sylogist (TSXV:SYZ) has acquired Information Strategies Inc (InfoStrat) for a cash consideration of C$3.5 million
- The transaction is subject to working capital adjustments, but closed on April 21
- InfoStrat generated $5.5 million in 2019, and is on track to continue growing in 2020
- InfoStrat will be integrated into Sylogist’s operating model, to support Sylogist’s future goals in the public sector
- Sylogist’s share price is up 6.71 per cent, and is currently trading for $9.07 per share with a market cap of C$219 million
Software company, Sylogist (TSXV:SYZ) has acquired Information Strategies Inc (InfoStrat) for a cash consideration of C$3.5 million.
The transaction, while subject to working capital adjustments, closed on April 21, 2020.
InfoStrat, a software company based in Washington DC, provides services to the US Federal Government, various US State Governments and not-for-profit organisations. The company has garnered a strong reputation for its enterprise level case management, grantor money management, and justice solutions.
InfoStrat is a Microsoft Gold partner, and has proprietary intellectual property which uses Microsoft Dynamics 365 CRM and Sharepoint. Over time, the business has built a strong marketing relationship with Microsoft, which Sylogist intends to explore further.
The acquisition makes a great deal of sense, considering the similarities between the two companies. Sylogist, a software company, also uses Microsoft Dynamics 365 at the foundational level, for the same target customer market. Specifically, both businesses provide solutions to a customer base in the public sector and the not-for-profit/NGO sectors.
Also, InfoStrat generated an impressive $5.5 million in revenue last year, and looks likely to continue growing in 2020.
In today’s market release, Sylogist welcomed InfoStrat CEO, Jim Townsend, and his team to the company. Sylogist will integrate InfoStrat into its operating model, combining the two to create new opportunities for growth and value creation.
In future, Sylogist hopes to market and implement its ERP and CRM based solutions for Canadian and US public sector and not-for-profit customers.
Sylogist’s share price is up 6.71 per cent, and trading for $9.07 per share, as of 10:07am EST.