Canadian SaaS company Sylogist acquired Microsoft Dynamics application partner The Pavlik Group for C $ 11.5 million. The valuation of the transaction is approximately 7.2 times the adjusted EBITDA expected for 2021.
This is technology merger and acquisition deal number 654 that ChannelE2E has covered so far in 2021.
Based in Barrie, Ontario, Pavliks provides proprietary SaaS applications and professional services, particularly to public sector organizations. The company has generally grown by 20% per year, and Pavlik is on track for revenue of $ 9.4 million and adjusted EBITDA of $ 1.6 million this year.
Strong business orientation from Microsoft Dynamics
About a third of Pavliks’ revenue is generated through its The Portal Connector (TPC) business unit, which enables customers to build web applications for customers through Microsoft Dynamics. Sylogist plans to accelerate the out-of-the-box integration of TPC beyond Microsoft databases and invest in its direct sales and channel capability.
Pavliks’ other business units include expert Microsoft Dynamics development and implementation services focused primarily on public sector entities and member associations and managed services including coveted cybersecurity and cloud productivity.
Pavliks has 50 employees and 230 customers. The current Pavliks management team will continue to lead its day-to-day operations, reporting to the Sylogist management team; with Ian Pavlik as Managing Director, reporting directly to Sylogist CEO Bill Wood, the buyer said.
Sylogist, founded in 1993, is headquartered in Calgary, Alberta, Canada. The company provides software solutions for the public sector and utility organizations around the world, including K-12 school districts and boards, government agencies, non-profit organizations, international non-governmental organizations, the manufacturing, warehousing and distribution.
This is Sylogist’s third strategic acquisition of the year. Previous agreements included the Canadian company Mission CRM, as well as the Oklahoma municipal accounting systems. As of March 2021, Sylogist was listed on the Toronto Stock Exchange.
Sylogist acquires Pavliks: “an exciting strategic intellectual property”
In a prepared statement on the deal, Bill Wood, President and CEO of Sylogist, said:
âWe are delighted to welcome Pavliks customers and team members to our growing Sylogist family. This acquisition is immediately accretive and brings Sylogist near term improved scale, organic growth, exciting strategic cash flow and intellectual property and value creation as our businesses are immediately stronger together.
Ian Pavlik, President of Pavliks, added:
âMy family knew we could only sell our business to someone who would put their customers first, invest in their people, and bring the expertise and resources to take it to the next level. After discussing and working at length with Bill and the Sylogist management team, I have every confidence that they are the right partner to achieve these goals and take them to new heights.
Sylogist: Previous acquisitions
This is Sylogist’s third acquisition in 2021. Previous agreements included Canadian company Mission CRM, as well as Municipal Accounting Systems of Oklahoma. As of March 2021, Sylogist was listed on the Toronto Stock Exchange.