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QUISITIVE ON ACQUISITION TRAIL  Featured

Quisitive hopes to make another channel acquisition in the second half of this year or first half of 2021. The company, which purchased Corporate Resource Group in June and Menlo Technologies in January, discussed those plans in this week’s earnings call for results for the year ended December 31.

Doing another deal “will be a key part of our growth strategy this year and beyond,” according to CEO Michael Reinhart. Quisitive lost approximately $5.3 million last year, an 11.6 percent increase from 2018 while revenue rose 47 percent of roughly $13.3 million. Since its acquisition, CRRG contribute a loss of $259,000 on a revenue of roughly $2.2 million. Since its purchase on June 1, CRG A loss of $259,000 on a revenue of roughly $2.2 million.  In its submission for Bob Scott’s Top 100 VARs, Menlo said it had revenue of $19.5 million. Quisitive has undergone a substantial amount of change with it undergoing a reverse acquisition and the move of headquarters to Canada.  The company has some work ahead of it. It has a going concern opinion from its auditors because of its working capital deficit and its debt, which includes debt incurred with the purchase of CRG. That includes approximately $4.8 million in purchase price notes for the CRG deal, which includes roughly $3.7 million in cash 19,500,000 share purchase warrants worth about $6.8 million, plus some contingent payments. Quisitive’s reselling business will be put under one brand, Reinhart said. With the deals, he said, “We established the foundation for the business to scale and grow for the future.”  Reinhart said the virus epidemic caused some customers to delay business, any scaling back has been limited. The COVID-19 crisis has changed the profile of target markets. While Quisitive is looking for strong, targets, there are some businesses  that have struggled, “but will be able to take advantage of relationship we have with Microsoft,” Reinhart said.

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