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QUISITIVE BUYS MENLO TECHNOLOGIES Featured

Quisitive Technology Solutions has emerged as an active acquirer in the mid-market financial software space. In June, it purchased the Corporate Renaissance Group and has followed that up with the acquisition of Menlo Technologies, which purchased the former SSI Consulting in 2018.

The deal appears to be worth about $12.6 million. That’s based on the current 19 cents a share for 19,784,981 Quisitive shares plus $3,774,190 in cash, and $5 million in 10-percent convertible debentures. There is also a $3.5 million earnout over three years plus an additional $1 million for exciding financial targets .Menlo had EBITDA of about $2.4 million for the year ended September 30 on revenue of approximately $17.5 million so with the maximum earnout and bonus the deal is roughly one times revenue. Menlo’s CEO Gary Prioste has joined Quisitive team as president of Menlo Technologies, in line with the naming of the other acquired company as CRG is now  Corporate Renaissance Group, a Quisitive company. CRG  revenue of approximately $5.8 million and EBITDA of about $2.25 million for 2018 so the deals added about $23.4 million to Quisitive. Toronto, Ont.-based Quisitive, Microsoft’s U.S. Partner of the Year, reported $4 million for the first quarter ended March 31. With its M&A activity, the company’s financials are substantially above the year-ago results.

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