Alithya Group Inc. (TSX/NASDAQ: ALYA) have completed previously announced reverse takeover (RTO) of Edgewater Technology, Inc. (NASDAQ: EDGW) by privately held Alithya Group Inc. (to be renamed Alithya Canada inc.).
Pursuant to the business combination, each of Alithya Canada and Edgewater became a wholly owned subsidiary of Alithya.
Alithya’s Class A subordinate voting shares will commence trading on the Nasdaq Capital Market (NASDAQ) and the Toronto Stock Exchange (TSX) under “ALYA” as of the open of markets on November 2, 2018.
Alithya Canada has also closed its previously announced bought deal private placement, issuing 11,736,055 subscription receipts at CDN $4.50 for gross proceeds of approximately CDN $52.8 million.
Alithya Canada has been previously backed by Capital Régional et Coopératif Desjardins (CRCD), Investissement Québec (IQ), Industrial Alliance, and TELUS Corporation.
Following the closing of the transaction, Services informatiques MixMédia inc., a company controlled by Ghyslain Rivard (Vice Chair), will own 4,612,000 Multiple Voting Shares with 9.9% equity interest but 39.2% voting power. CRCD, Industrielle Alliance, Investissement Québec will own 4,477,261, 3,732,133, and 3,665,731 Class A subordinate voting shares, representing 9.6% equity interest (3.8% voting), 8.0% interest (3.2%), and 7.8% interest (3.1%) respectively.
Ghyslain Rivard, along with Pierre Turcotte (Chair) and Paul Raymond (CEO), under a voting agreement, will collectively own 7,863,529 Multiple Voting Shares for 66.9% of voting power.
photo credit: Alithya
Alithya acquires Edgewater Technology and becomes a leading North American strategy and digital technology firm
Alithya to begin trading on November 2, 2018 under symbol “ALYA” on NASDAQ and the TSX
– Alithya establishes its footprint in the US market and becomes a leading North American digital technology firm
– Alithya substantially bolsters its Microsoft and Oracle enterprise and cloud solutions offerings
– The company completes a C$52.8 million private placement
MONTREAL, QUEBEC, November 1st, 2018 – Alithya Group inc. (TSX: ALYA, NASDAQ: ALYA) (“Alithya”), a leader in strategy and digital technologies, today announced the successful completion of the previously announced business combination between Alithya Group Inc. (“Alithya Canada”), a Québec private corporation, and Edgewater Technology, Inc. (“Edgewater”), a Delaware corporation listed on the NASDAQ Global Market (NASDAQ: EDGW). Pursuant to the business combination, each of Alithya Canada and Edgewater became a wholly owned subsidiary of Alithya.
As a result, Class A subordinate voting shares of Alithya (“Subordinate Voting Shares”) will commence trading on the Nasdaq Capital Market (NASDAQ) and the Toronto Stock Exchange (TSX) under the ticker symbol “ALYA” on November 2, 2018.
‟I am very pleased that we have completed this transaction. This is a significant piece of our growth strategy, which is based on both organic and acquisitions, which will constitute a pillar in our ambition to become a leading North American firm in the consulting, transformation and digital technology solutions market,” said Paul Raymond, President and CEO of Alithya. ‟Our Board of Directors and our management team strongly believe that the diversified expertise and skills of our 2,000 professionals will meet the strong market demand for innovative and agile technology partners with the scale to accompany them in their transformation challenges.”
Closing of Private Placement
On October 30, 2018, Alithya Canada closed its previously announced bought deal private placement where an aggregate of 11,736,055 subscription receipts were issued at a price of C$4.50 per subscription receipt (the “Offering”) for estimated gross proceeds of approximately C$52.8 million. Each subscription receipt automatically converted into an Alithya Canada common share prior to the closing of the business combination, and then exchanged for one Subordinate Voting Share upon closing of the business combination.
The Offering was completed through a syndicate of underwriters led by Desjardins Capital Markets, and including GMP Securities L.P., National Bank Financial Inc. and Echelon Wealth Partners Inc. Desjardins Capital Markets also acted as the exclusive financial advisor to Alithya Canada in the context of the business combination.
A Strong Integrated Offering
Edgewater has nearly 400 experts across the United States specializing in the implementation of Microsoft and Oracle enterprise and cloud solutions. These services are currently commercialized under the Fullscope and Ranzal banners. The reputation of these two organizations is well established thanks to the many awards they earned from the industry.
Thanks to the combined talents of its 2,000 professionals, Alithya now possesses a diversified offering, which includes strategy services, Microsoft (ERP, CRM, Azure and analytics) and Oracle (ERP Cloud, EPM, EBS and analytics) technologies as well as custom solutions. The company has deployed projects to more than 2,000 midsized and large business customers in Canada, the United States and Europe.
Alithya now provides leading-edge expertise in implementing Microsoft solutions, including Enterprise Resource Planning (ERP Cloud), Customer Relationship Management (CRM), Azure, and Business Analytics. Fullscope’s achievements have earned it numerous industry awards, including being named to Microsoft’s prestigious and highly-regarded Inner Circle in 2018, for a 13th year in a row.
Now together, the Alithya and Ranzal teams offer businesses in Canada and the United States unparalleled expertise with the Oracle technology in a variety of industries. The teams have deployed more than 1,000 Enterprise Resource Planning (ERP Cloud), Enterprise Performance Management (EPM), previously known as Hyperion and Enterprise Business Solutions (EBS) as well as business analytics.
Alithya is recognized for its digital strategy services, with several notable accomplishments in helping organizations to make strategic decisions related to technology orientations, organizational performance, architecture and transformation.
Finally, the Alithya Digital Solutions Center offers clients to undertake their projects, of any size, with the assurance of high product quality through the best practices deployed in the center. This adds to the thousands of achievements Alithya has successfully delivered over its 25 years of experience in system integration and development.
Alithya’s agile operating mindset is particularly appreciated by companies, including its co-sourcing approach. This allows for risk sharing between the client and Alithya, and provides the customer with continuous visibility into the fulfillment of projects.
About Alithya Group
Alithya Group inc. is a leader in digital strategies and technologies in North America. Founded in 1992, the Company employs approximately 2,000 professionals in Canada, the United States and Europe. Alithya’s integrated offering is based on the pillars of expertise: strategy services, Microsoft and Oracle technologies and custom solutions. Its clients are active primarily in the financial, manufacturing, retail and distribution, telecommunications, transportation, professional services, health and government sectors. Alithya is an advocate for workforce diversity. As such, the firm is a member of the 30% Club, which encourages the participation of women in management roles, and is implementing immigrant-friendly recruiting initiatives.
Vice President, Communications and Investor Relations ǀ Alithya Group
514 285-5552, poste 2891
Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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