NOW's acquisition expands its global reach
with an established Latin American leader in the data
science and business analytics market
TORONTO, Feb. 17, 2022 /CNW/ - NowVertical Group Inc.
(TSXV: NOW) ("NOW" or the "Company"), a big
data, Vertical Intelligence ("VI") software and services
company, is pleased to announce that it has closed its previously
announced acquisition of 100% of the issued and outstanding
securities of CoreBI S.A. and CoreBI S.A.S. (together,
"CoreBI"), an ISO 9000 certified data science and analytics
firm that provides data engineering, big data, data
governance, business intelligence and data science-based in
Latin America (the
"Transaction").
"Adding CoreBI and the experienced team in Latin America is another major milestone for
NOW. We are excited by the opportunity to work with their people
and clients in one of the fastest-growing big data and business
analytics markets in the world," said Daren
Trousdell, Chairman & CEO of NOW. "The CoreBI
acquisition is a clear demonstration of our M&A strategy at
work, providing the Company with clear synergies, including planned
cross-customer selling, footprint expansion, the consolidation of
growing recurring revenues and experienced staff".
Operating from two primary locations in Argentina (Buenos
Aires & Cordoba) and also from Bogotá, Colombia, CoreBI was founded in 2006 by
Leandro Srur and Mauricio Pinto. The company is focused on
empowering bold decision-making for its customers through big data,
data-driven consulting, business intelligence, advanced-analytical
models, and data governance business insights. CoreBI currently
services more than 20 marquee customers across the banking and
finance, telecommunications, retail, energy, and pharmaceutical
industries. With over 60 regional success stories, CoreBI works
with some of the world's most recognizable global enterprises,
including Metlife Worldwide, Disney, Nike, Visa, and Raízen
Energia, providing consulting services and software solutions
across the big data analytics value chain. CoreBI generated an
audited net income of approximately US$1.4 million, US$7.1 million in revenue, and US$1.8 million in EBITDA in 2021, representing
notable increases over the estimated unaudited consolidated amounts
stated in NOW's January 13, 2022
press release announcing the acquisition.
Expanding into LATAM with NOW Solutions
CoreBI and NOW's previously announced acquisition of Allegient
Defense Inc., which is anticipated to close in the first half of
2022, will join NOW Solutions to expand both the group's industry
and geographic footprints. The Solutions team offers customers an
industry-specific, expert-led service and consulting team ideally
positioned to provide organization-wide strategy and implementation
guidance. The group is led by Dave
Whitmire, President of NOW Solutions and an experienced
executive and US Special Operations veteran with 25+ years in the
public and private sectors.
By offering transformational services across verticals, NOW
Solutions provides the Company with significant advantages over
traditional software providers and other consolidators by
streamlining integrations and leveraging cross-platform selling
opportunities and synergies. As a critical component of the
Company's virtuous value business model, NOW Solutions accelerates
software sales cycles and improves service margins by offering
NOW's proprietary software across verticals to existing clients. To
learn more about NOW Solutions, visit the Company's website
at: https://www.nowvertical.com/solutions
Transaction Details
Pursuant to the terms of a share purchase agreement dated
January 12, 2022, the Company
acquired CoreBI for total aggregate consideration of up to
US$8.0 million, consisting of (i) a
cash payment of US$3.0 million on
closing, (ii) a contingent cash payment of US$1.75 million payable on the 12-month
anniversary of closing provided certain corporate objectives are
satisfied, and (iii) up to a maximum aggregate of US$3.25 million in the form of an earn-out,
payable to the vendors on the first, second, third and fourth year
anniversaries of closing upon CoreBI achieving certain adjusted
EBITDA targets.
About NowVertical Group Inc.
NOW is a big data, Vertical Intelligence ("VI") software
and services company that is growing organically and through
acquisition. NOW's VI solutions are organized by industry vertical
and are built upon a foundational set of data technologies that
fuse, secure, and mobilize data in a transformative and compliant
way. The NOW product suite enables the creation of high-value VI
solutions that are predictive in nature and drive automation
specific to each high-value industry vertical. For more information
about the Company, visit www.nowvertical.com.
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.
Cautionary Note Regarding Non-IFRS Measures
This news release makes reference to certain non-IFRS measures.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS and are therefore
unlikely to be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further
understanding of the Company's results of operations from
management's perspective. The Company's definitions of non-IFRS
measures used in this news release may not be the same as the
definitions for such measures used by other companies in their
reporting. Non-IFRS measures have limitations as analytical tools
and should not be considered in isolation nor as a substitute for
analysis of the Company's financial information reported under
IFRS. The Company uses non-IFRS financial measures including
"Adjusted Revenues", "EBITDA" and "Adjusted EBITDA". These non-IFRS
measures are used to provide investors with supplemental measures
of our operating performance and to eliminate items that have less
bearing on our operating performance or operating conditions and
thus highlight trends in our core business that may not otherwise
be apparent when relying solely on IFRS measures. Specifically, the
Company believes that Adjusted EBITDA, when viewed with the
Company's results under IFRS, provide useful information about the
Company's business without regard to potential distortions. By
eliminating differences in results of operations between periods
caused by factors such as acquisition related adjustments,
depreciation and amortization methods, impairment and other
charges, the Company believes that Adjusted EBITDA can provide a
useful basis for comparing the current performance of the
underlying operations being evaluated. The Company believes that
securities analysts, investors and other interested parties
frequently use non-IFRS financial measures in the evaluation of
issuers. The Company's management also uses non-IFRS financial
measures in order to facilitate operating performance comparisons
from period to period and to prepare annual budgets and
forecasts.
SOURCE NowVertical Group Inc.