pcJ News Briefs – DATA Communications Management Corp. (TSX: DCM) has completed the acquisition of Calgary based BOLDER Graphics. To fund the acquisition, DATA has also closed the new $5 million senior credit facility with Integrated Private Debt Fund V LP, and its general partner, Integrated Private Debt Fund GP Inc.
J.G. Smeltzer Professional Corporation and McCarthy Tétrault LLP acted legal counsel to BOLDER Graphics and DATA respectively.
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DATA Communications Management Corp. Announces Closing of BOLDER Graphics Acquisition and New $5 million Senior Credit Facility
Brampton, Ontario – November 10, 2017 – DATA Communications Management Corp. (TSX: DCM) (“DATA” or the “Company”) is pleased to announce it has closed the previously announced acquisition of BOLDER Graphics (“BOLDER”) of Calgary, Alberta. DATA also announces it has closed the new $5 million senior credit facility with Integrated Private Debt Fund V LP, and its general partner, Integrated Private Debt Fund GP Inc. (“IPD”), to help fund the acquisition.
BOLDER is a leading western Canadian marketing communications business, tracing its roots back more than 40 years. Its core capabilities are in large-format digital printing, offering point of sale signage, corporate packaging, outdoor signage and vehicle graphics.
“The acquisition of BOLDER further strengthens our presence as Western Canada’s largest printer, while adding to our leading large format presence in the Canadian market,” said Michael G. Sifton, CEO of DATA. “We have now completed three acquisitions in 2017 which have added more than $45 million of annual revenue to our marketing communications business. This market is a strategic focus for us, and where we see strong opportunities for growth,” he added.
DATA has acquired BOLDER for a total purchase price of approximately $5.1 million, comprised of $2.0 million in cash paid on closing (including funds advanced in repayment of approximately $0.4 million of shareholder loans and transaction expenses), $1.0 million through the issuance of common shares of DATA, $1.1 million in the form of a subordinated, unsecured 6.0% interest-bearing vendor take back note to be payable over a 24 month period, and the assumption of approximately $1.0 million in outstanding long term indebtedness. The purchase price will be subject to certain post-closing adjustments, including working capital.
A total of 704,424 common shares of DATA have been issued to the vendors and the number of DATA’s issued and outstanding common shares has increased from 19,334,735 to 20,039,159 common shares.
Increase in Senior Credit Facilities
In connection with the acquisition, DATA has entered into a new $5 million senior term credit facility with IPD, of which approximately $2 million was used to fund the up-front cash component of the BOLDER acquisition and repay shareholder loans, $2.6 million was used to repay in full the outstanding balance of the term loan sub-facility of the Company’s senior revolving credit facility with a Canadian chartered bank, and the balance will be used for general working capital purposes.
About DATA Communications Management Corp.
DATA is a leading provider of business communication solutions, bringing value and collaboration to marketing and operation teams across North America. We help marketers and agencies unify and execute communications campaigns across multiple channels, and we help operations teams streamline and automate document and communications management processes. Our core capabilities include direct marketing, print services, labels and asset tracking, event tickets and gift cards, logistics and fulfilment, content and workflow management, data management and analytics, and regulatory communications. We serve clients in key vertical markets such as financial services, retail, healthcare, lottery and gaming, not‐for‐profit, and energy. We are strategically located across Canada to support clients on a national basis, and serve the U.S. market through our facilities in Chicago, Illinois.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
For further information, contact: Mr. Michael G. Sifton Mr. James E. Lorimer Chief Executive Officer Chief Financial Officer DATA Communications Management Corp. DATA Communications Management Corp. Tel: (905) 791-3151 Tel: (905) 791-3151