Quisitive Announces Creation of a Premier, Global Microsoft Digital Transformation and Cloud-Based Solutions Leader with Acquisition of Catapult Systems | Quisitive
Quisitive Announces Creation of a Premier, Global Microsoft Digital Transformation and Cloud-Based Solutions Leader with Acquisition of Catapult Systems
November 8, 2021
Quisitive’s Cloud Solutions Capabilities Further Bolstered by Catapult’s Robust IT Services Business and Relationship with Microsoft

TORONTO – November 8, 2021 – Quisitive Technology Solutions, Inc. (“Quisitive” or the “Company”) (TSXV: QUIS), a premier Microsoft Solutions Provider and Payment Solutions Provider, has signed a definitive agreement dated November 8, 2021 to acquire all of the issued and outstanding membership units (the “Membership Units”) of Austin, Texas-based Catapult Systems, LLC (“Catapult”), a Microsoft-focused digital solutions and services provider, for US$51.5 million in cash (the “Transaction”).

The Transaction brings together two of the largest Microsoft exclusive technology partners and brings Quisitive’s combined run-rate revenue to over US$160 million. This combination also creates a formidable footprint in Texas.

For the trailing twelve months ended September 30, 2021, Catapult generated unaudited revenues of approximately US$52.2 million with nearly 35% from recurring revenue. The Transaction is expected to be accretive on an EBITDA and earnings basis in 2022.

The details of the Transaction are set forth in a definitive purchase agreement between Quisitive, Ltd., a wholly owned subsidiary of the Company, as purchaser, and a wholly owned subsidiary of Chinasoft International Limited (the “Vendor”), that was negotiated at arm’s length. Completion of the Transaction is subject to a number of standard conditions for a transaction of this nature, including regulatory approval, and completion of an equity financing as further described below. The Transaction is expected to close on or about November 17, 2021.

Acquisition Summary and Rationale

Management of the Company believes that the acquisition of Catapult is compelling based on the following key factors:

  • Strengthens Quisitive’s senior leadership team with veteran industry leaders who have proven success with a similar philosophy of focusing exclusively on Microsoft platforms; these leaders understand how to deliver high value services to customers, allowing key members of Quisitive management more time to focus on the payments solutions business as it begins to scale and grow.
  • Establishes a premier global Microsoft partner within the cloud solutions space by combining two of the biggest U.S. Microsoft exclusive technology partners.
  • Diversifies Quisitive’s recurring revenue through the addition of Catapult’s IP platforms, Spyglass, a solution accelerator for managing security in a Microsoft environment, and Azure Management Services (AMS), a service for continuous optimization and management of Azure for infrastructure, data and applications, which includes a proprietary monitoring and altering tool with IP.
  • Creates significant sales and marketing synergies across the combined client base enabled by a consolidated sales and solutions team of over 50 dedicated cloud solution sellers and solutions specialists.
  • Provides geographic and personnel scale increasing total employee hubs to 15 across the globe and over 700 combined employees.
  • Bolsters Quisitive’s Cloud Solutions offering by augmenting its Digital Workplace practice and establishing a robust Security practice.
  • Further positions the Company as a leading Microsoft partner with 10 Microsoft Advanced Specializations and 17 Microsoft Competencies.

“The combination of Quisitive and Catapult will bring together top providers to create one of the most preeminent partners in the Microsoft ecosystem,” said Quisitive CEO Mike Reinhart. “In addition to significantly elevating our cloud solutions value proposition, Catapult adds a complementary client base, highly talented human capital, and an attractive recurring revenue profile. The acquisition is perfectly aligned with our inorganic strategy, which is laser focused on acquiring companies like Catapult that augment our breadth of Microsoft capabilities, geographic reach, and intellectual property. We look forward to working with the Catapult team to leverage the attractive synergies and opportunities to capture an even greater share of the digital transformation market.”

Terri Burmeister, Catapult CEO and President added: “We are excited to unite these two leading companies to create the top Microsoft-focused partner in the U.S. Quisitive’s breadth of services, IP and industry alignment are a perfect complement to Catapult’s solutions and services and will provide great value to our established customer base. Our brand promise is to be very customer-centric and combining this focus on delivery excellence with Quisitive creates a company that is truly a force to be reckoned with in the Microsoft ecosystem.”

About Quisitive:

Quisitive (TSXV: QUIS) is a premier, global Microsoft partner that harnesses the Microsoft platform and complementary technologies, including custom solutions and first-party offerings, to generate transformational impact for enterprise customers. Our Cloud Solutions business focuses on helping enterprises move, operate, and innovate in the three Microsoft clouds. Centering on our LedgerPay product suite, our Payments Solutions business leverages the Microsoft Azure cloud to transform the payment processing industry into an entirely new source of customer engagement and consumer value. Quisitive serves clients globally from eleven employee hubs across the world. For more information, visit www.Quisitive.com and follow @BeQuisitive.

About Catapult:

Catapult is a Microsoft-focused solutions and services firm that specializes in imagining, building, and sustaining digital transformation and cloud-based solutions that people love to use. Catapult has consistently been recognized as a leading Microsoft Partner with 10 Advanced Specializations and 17 Microsoft competencies. Catapult was recognized as the 2020 MSUS Partner Award Winner Azure – DevOps, Top Microsoft 365 Security Partner for FY20, and named a finalist of the Data Analytics 2020 Microsoft Partner of the Year Award. Catapult has offices nationwide.

Quisitive Investor Contact

Matt Glover and John Yi

Gateway Investor Relations

[email protected]


Quisitive Management Contact

Mike Reinhart

President and Chief Executive Officer

[email protected]


Tami Anders

Chief of Staff

[email protected]

Financial Measures

There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

The Purchased Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Purchased Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Generally, any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information or statements. The forward-looking information or statements in this news release may relate, among other things, to: the completion of the Transaction, including the Offering; the anticipated benefits of the Transaction to Quisitive and its shareholders; the future growth potential of the Company on a post-Transaction basis; statements with respect to the release the Company’s preliminary revenue and other financial results for the third quarter ended September 30, 2021 and the Company’s expected revenue and other financial results for the quarter ended September 30, 2021; the intention to scale operations and make technology investments; the accretive nature of the Transaction, including expected synergies thereof; future financial performance; and receipt of all regulatory approvals.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected results from the completion of the Transaction; receipt of all required regulatory approvals including the approval of the TSXV; business integration risks; risks that the estimated financial results will differ from those set forth herein as a result of the Company’s financial closing procedures, final adjustments and other developments that may arise between the date of this news release and the issuance of the financial statements; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the Company’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the technology industry; unproven markets for the Company’s product offerings; lack of regulation and customer protection; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; network security risks; the ability of the Company to maintain properly working systems; foreign currency trading risks; use and storage of personal information and compliance with privacy laws; use of the Company’s services for improper or illegal purposes; global economic and financial market conditions; uninsurable risks; changes in project parameters as plans continue to be evaluated; and those factors described under the heading “Risks Factors” described in the Company’s annual information form dated August 20, 2021, and the Company’s most recent management discussion & analysis dated June 30, 2021, each available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.