E-Invoicing Provider Cortex Acquires Powervision

Cortex Business Solutions (TSXV:CBX) announced that it has agreed to acquire Powervision for an aggregate purchase price of $7 million.

The company said that it entered into a share purchase agreement with the shareholders of Powervision Software pursuant to which it agreed to acquire all the outstanding common and preferred shares of Powervision.

As quoted in the press release:

“I believe this transaction is transformational for Cortex and its stakeholders. The combining of these technologies, similar cultures and customer-centric values has been a long time coming in our customers’ eyes and with their continual support, we will now be providing a single source to our clients that has historically required our customers to use 2 vendors, 2 support numbers and have 2 budgets for a solution that has always worked great together. Cortex has expanded its product offering to include a digital document workflow and storage solution,” said Joel Leetzow, President and CEO of Cortex. “This acquisition is aligned with what I have shared previously regarding our growth strategy through both M&A transactions and organic growth.”

“We are thrilled to combine the highly synergetic Cortex e-invoicing-as-a-service with the expanded workflow and document management solutions offering of Powervision allowing Cortex to be more competitive,” said Jason Baird, VP, Finance & CFO of Cortex. “This transaction will grow Cortex’s consolidated revenue, EBITDA, operating margins, and customer base to add immediate value for our shareholders and provide more growth potential of our products.”

Transaction Highlights

Operations

Powerful vertical solution for procure-to-pay solutions
Over 60 active customers
High revenue per employee historically
Strong partnerships and third-party integration solutions
Finance

Over $2.3 million in 2017 annual revenue
Strong historical cash flows
High historical operating margins
The Transaction was purposely structured to not dilute current Cortex shareholders while improving Cortex’s balance sheet and future growth opportunities.

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