Uniserve Communications Corporation has announced its entry into a letter of intent to acquire an Ontario-based managed service provider, marking a strategic expansion of its operations in the province. The acquisition aims to enhance the company's service offerings and support the growth of its recurring revenue-based services while consolidating its ability to provide comprehensive solutions to Ontario businesses.
The transaction is expected to bring approximately $2.1 million in top-line sales and $600,000 in expected EBITDA to Uniserve, along with critically skilled talent. According to Interim CEO Kwin Grauer, this move supports the company's efforts to build future-ready digital infrastructure as Canadian businesses continue their digital transformations. The acquisition will further enhance the depth of services Uniserve delivers through its Ontario operations.
The purchase price for the transaction is expected to be CAD $1,300,000, payable through $1,000,000 in cash and $300,000 delivered as a convertible note expiring three years from the closing date. The note will be convertible into common shares of the company at $0.80 per share during the first year, $0.90 per share during the second year, and $1.00 per share thereafter until expiration. Interest will accrue on the balance at 7% per annum, calculated and paid monthly by the company.
This transaction is subject to several conditions, including the execution of a definitive agreement within 30 days, further due diligence by Uniserve, final approval from the company's board of directors, and approval from the TSX Venture Exchange. The company will not assume any long-term debt from the managed service provider, and no finder's fees will be paid in connection with the transaction. The managed service provider and its shareholders are arm's length to Uniserve, and the transaction will not result in a change of control.
The acquisition represents a significant development in Canada's managed services landscape, as businesses increasingly rely on comprehensive IT solutions to navigate digital transformation challenges. By expanding its Ontario footprint, Uniserve strengthens its position as a national provider of managed IT, ISP, cloud, and data center services. The financial structure of the deal, combining cash and convertible notes, demonstrates a balanced approach to growth financing while bringing valuable talent and recurring revenue streams to the organization.
For additional information about Uniserve Communications Corporation, visit https://www.uniserve.com or access regulatory filings at https://www.sedarplus.ca. The original news release can be viewed at https://www.newmediawire.com.
