CALGARY, AB, Oct. 6, 2021
/PRNewswire/ - Sylogist Ltd. (TSX: SYZ) ("Sylogist" or
the "Company"), is pleased to announce the acquisition of MISSION
CRM Ltd. ("Mission CRM"), the developer of the Mission CRM
fundraising and donor engagement SaaS platform for large and
mid-market nonprofit organizations. Pursuant to the transaction,
which closed on October
6th, 2021, Sylogist acquired all the shares of
Mission CRM for $2.67 million (CAD),
approximately 3x trailing annual revenue, subject to working
capital adjustments, plus an earnout tied to agreed-upon revenue
targets over the next three years. The annual earnout milestones
reflect a compound annual growth rate in excess of 100%, with the
business achieving more than $8.5
million in annual revenue by the end of the earnout period.
Should Mission CRM achieve its earnout milestones, the total
purchase price will equal approximately 1x revenue exiting FY2023.
Mission CRM's two founders will remain with the company to drive
its growth.
Founded in 2016, Mission CRM set out to develop an innovative,
100% SaaS fundraising and donor engagement platform built on a
Microsoft Dynamics 365 and Azure foundation; fully embracing the
Microsoft Common Data Model ("CDM") for nonprofit and
non-governmental organizations. With its latest release in 2020,
and unlike other point-solution products in the marketplace, the
platform provides seamless constituent engagement, online
fundraising and campaign pages, event management, peer-to-peer
fundraising, donation processing, funds distribution, postal
integrations, and CRA receipting.
Since the commercial release of the Mission CRM platform, 21
high-profile organizations across North
America have selected and implemented the solution. As
Mission CRM is built on top of Microsoft's Fundraising and
Engagement offering and the CDM, it's integrated from the get-go
with Microsoft Cloud for Nonprofit. In fact, the
company co-developed the initial Mission CRM solution with
Microsoft and licensed the platform kernel to Microsoft in 2020 for
its use in Microsoft Cloud for Nonprofit. In turn, Mission CRM is
the logical and easy upgrade path for organizations needing more
functionality than what the Microsoft Fundraising and Engagement
offering includes.
Bill Wood, Sylogist's President
and CEO stated: "We are very excited to welcome Mission CRM's team
and customers to Sylogist. This is a highly strategic deal for both
parties. While Mission CRM will continue to be offered as a
stand-alone solution, the innovative fundraising platform
complements our Serenic Navigator ERP and other IP extraordinarily
well. We look forward to offering fully integrated front-end donor
engagement, fundraising, grants management, analytics, and back-end
financial management and reporting in a single, comprehensive SaaS
platform in the near future.
Over the last several months, we have pursued select booking
opportunities in partnership with the Mission CRM team, which
validated both the attractiveness of their platform and a unified
solution. We are confident their fundraising and donor engagement
solution offers innovation the market is looking for. In parallel,
we initiated discussions with Mission CRM's founders about
acquiring their company. With today's announcement, we look forward
to launching an aggressive go-to-market campaign as a united
team.
Sylogist intends to accelerate and help recognize Mission CRM's
exciting growth trajectory. We will provide investment, resources,
and expertise to enable rapid scaling on all fronts. This strategic
acquisition brings with it strong IP, marquee customers, and an
exceptional team, with whom we look forward to realizing the
business' full potential." concluded Mr. Wood.
Christina Herancourt, President of Mission CRM, stated: "I am
delighted to be joining the Sylogist team. When my co-founder, CJ
Brooks, and I established this company, we did so with a goal of
helping nonprofits achieve their missions with an innovative donor
management platform. Joining forces with Sylogist provides the
scale, expertise, and resources to accelerate our growth – even
more so with Bill's first-hand knowledge of the space and his
learnings from bringing Blackbaud's Raiser's Edge product to
market. With cutting-edge technology, a strong team, backing from
Sylogist, and alignment across our strategies and organizations, we
are very excited about what the future holds."
About Sylogist
Sylogist is a public sector SaaS company that provides
comprehensive ERP, CRM, fundraising, education administration, and
payments solutions that allow our public sector customers to carry
out their missions. We serve over 1,500 customers globally,
including all levels of government, non-profit and non-governmental
organizations, educational institutions, and public
compliance-driven and funded companies. We have a strong balance
sheet, industry-leading profitability, a track record of successful
acquisitions, and a portfolio of mission-critical SaaS
solutions.
Full financial statements together with Management's Discussion
and Analysis are available on SEDAR at www.sedar.com.
The Company's stock is traded on the TSX Exchange under the
symbol SYZ. Information about Sylogist can be found
at www.sylogist.com.
About Mission CRM
Mission CRM provides nonprofits with an innovative SaaS
fundraising and donor engagement platform built on Microsoft's
Dynamics 365, Azure, and Common Data Model, allowing charities to
accelerate the momentum of their operations and advance their
missions. The platform is currently in use by 21 high-profile
customers across North America.
The company has differentiated and disruptive IP, a strong
Microsoft relationship, and an exceptional team working to
accelerate its growth.
Mission CRM is a division of Sylogist. Information about the
company can be found at www.missioncrm.com.
Forward-looking Statements
Certain statements in this news release may be
forward-looking statements within the meaning of applicable
securities laws and regulations. These statements typically
use words such as expect, believe, estimate, project, anticipate,
plan, may, should, could and would, or the negative of these terms,
variations thereof or similar terminology. Forward-looking
information in this news release includes statements with respect
to the total purchase price equalling approximately 1x revenue
should Mission CRM achieve its earnout milestones, earnout
milestones reflecting a compound annual growth rate in excess of
100% and the expectation of Mission CRM's business achieving
$8.5 million annual revenue in that
period, Sylogist's confidence that the Mission CRM platform offers
the innovation the market is looking for, Sylogist's intention to
offer a single comprehensive SaaS platform, and Sylogist's
intention to accelerate and help recognize Mission CRM's expected
growth trajectory through investment, resources and expertise to
enable rapid scaling. By their very nature, forward-looking
statements are based on assumptions and involve inherent risks and
uncertainties, both general and specific in nature. It is therefore
possible that the beliefs and plans and other forward-looking
expectations expressed herein will not be achieved or will prove
inaccurate. Although Sylogist believes that the expectations
reflected in these forward-looking statements are reasonable, it
provides no assurance that these expectations will prove to have
been correct. Forward-looking information involves risks,
uncertainties and other factors that could cause actual events,
results, performance, prospects, and opportunities to differ
materially from those expressed or implied by such forward-looking
information, including headwinds from COVID-19 and economic
turmoil, inability to achieve earnout milestones for any reason,
competitive threats to innovation or Sylogist's inability to invest
and add expertise and market uptake of Sylogist products.
Additional information regarding some of these risks, uncertainties
and other factors may be found in the Company's
Annual Information Form for the fiscal period ended September 30, 2020, and in
the management's discussion and analysis for the three months ended
June 30, 2021, and other documents
available on the Company's profile at www.sedar.com. Material
assumptions and factors that could cause actual results to differ
materially from such forward-looking information include
Sylogist's ability to attract and retain customers and to
realize on its investments. Although Sylogist believes that the
material assumptions and factors used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only
applies as of the date of this news release, and no assurance can
be given that such events will occur. Sylogist disclaims any
intention or obligation to update or revise any forward-looking
information, whether because of new information, future events or
otherwise, other than as required by law.
Certain information set out herein may be considered as
"financial outlook" within the meaning of applicable securities
laws. The purpose of this financial outlook is to provide readers
with disclosure regarding Sylogist's reasonable expectations as to
the anticipated results of its proposed business activities for the
periods indicated. Readers are cautioned that the financial outlook
may not be appropriate for other purposes.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sylogist-acquires-innovative-saas-fundraising-platform-301394682.html
SOURCE Sylogist Ltd.