Cortex will complete the deal through a cash payment of $4.75 million subject to customary holdbacks and adjustments, and a promissory note in the amount of $2.25 million.
Founded in 1992, Powervision specializes in the development eDocuments management and workflow management software, and has a client base that covers a variety of industries throughout Canada. Its acclaimed AP Workflow product is used daily by hundreds of users, and a significant number of Powervision customers are already on the Cortex Network.
“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,” Joel Leetzow, president and CEO of Cortex, said in a press release. “This acquisition is aligned with what I have shared previously regarding our growth strategy through both M&A transactions and organic growth.”
The transaction is expected to close in coming days, and is subject to certain closing conditions, as well as the approval of the TSX Venture Exchange.
“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 of 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.”