Uniserve Communications Corporation has entered into a letter of intent to acquire an Ontario-based managed service provider for CAD $1,300,000, a strategic move expected to add approximately $2.1 million in top-line sales and $600,000 in expected EBITDA to the company. The transaction will also bring critically skilled talent to the organization, enhancing Uniserve's service delivery capabilities and supporting growth in recurring revenue-based offerings. Kwin Grauer, Interim CEO of Uniserve, emphasized that this acquisition aligns with the company's efforts to build future-ready digital infrastructure as Canadian businesses continue their digital transformations.
The purchase price will be paid through $1,000,000 in cash and a $300,000 convertible note that accrues interest at 7% per annum and is convertible into common shares at varying prices over three years. Uniserve confirmed that it will not assume any long-term debt from the acquired MSP, and no finder's fees will be paid in connection with the transaction. The acquisition is subject to several conditions including execution of a definitive agreement within 30 days, completion of due diligence, final approval from Uniserve's Board of Directors, and approval from the TSX Venture Exchange.
This transaction represents a significant step in Uniserve's strategy to consolidate service offerings in Ontario and build a comprehensive national digital infrastructure platform. The acquired MSP offers a full stack of services including security, value-added reseller services, and traditional managed IT services, which complement Uniserve's existing portfolio of managed IT, ISP, cloud, and data centre services. The MSP and its shareholders are arm's length to Uniserve, and the transaction will not result in a change of control for the company. For additional information about Uniserve, investors can visit https://www.uniserve.com or access regulatory filings at https://www.sedarplus.ca.
