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ALITHYA, EDGEWATER REVS ESTIMATED Featured

Paul Raymond, AlithyaThe 2018 revenue for the pending combination of Edgewater Technology, a Dynamics and Oracle partner, and Alithya has been estimated at $279.5 million. Since June, the companies have raised the target 2019 revenues from a range of $262 million to $277 million to a revised $295.9 million.

The figures are part of a prospectus for the proposed merger. Edgewater shareholders are scheduled to vote on the proposal on October 29.  The parent,  Alithya Group, headed by CEO Paul Raymond, will become Alithya Canada while Edgewater will be a subsidiary with  the new Alithya a publicly traded company. Prior to the closing, Edgewater will issue a special dividend of $20.5 million, to be adjusted dollar-for-dollar, depending on whether Edgewater cash is above or below $8.5 million. Edgewater was taken over by an investor group last year and as a result, revenue dropped to $111.8 million for the year ended Dec. 31, 2017, from $126.5 million for 2016. The estimate shows this year’s revenue rising to $115.1. Estimates are Edgewater revenue will not exceed the 2016 figures until 2020, estimated at $130.8 million. By contrast, Alithya revenues are expected to show steady improvement from $157.9 million pro forma for 2017 and estimated to hit $164.4 million this year and $195.4 million in 2020. The combined 2020 total is estimated at  $326.2 million.

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