Sylogist Ltd.

Sylogist Ltd.

July 28, 2014 16:29 ET

Sylogist Completes Acquisition of Serenic Operating Companies

CALGARY, ALBERTA--(Marketwired - July 28, 2014) -


Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist") is pleased to announce the completion of the acquisition of the Serenic operating companies as previously announced on June 26, 2014. Sylogist has acquired all the outstanding shares of Serenic Canada Inc., Serenic Software, Inc. and Serenic Software (EMEA) Limited (collectively the "SOCs"), each a wholly-owned subsidiary of Serenic Corporation ("Serenic"). The SOCs conduct virtually all of Serenic's business today and which includes Serenic's existing proprietary enterprise application software, all existing customer relationships, customer contracts, Microsoft and other third party agreements as well as its tax pools. Serenic operates from principal offices located in Lakewood (Denver), Colorado and Edmonton, Alberta with dealer representation worldwide.

For 100% of the shares of the SOCs, Sylogist paid approximately $8.1 million (CDN) cash consideration and assumed net working capital assets of approximately $0.5 million (CDN) along with deferred revenue liabilities of approximately $4.2 million, subject to post-closing adjustments. Sylogist has acquired all rights to the Serenic brand.

"The Serenic businesses have historically generated annual revenue of $11-12 million with gross margins in the 65-70% range. The acquisition adds over 1,500 recurring revenue customers. Sylogist is retaining 36 employees in key operating management and support roles spanning sales and marketing, customer servicing, and enterprise product development. Serenic's strength in servicing public sector, non-governmental (NGO) and non-profit (NFP) markets will extend Sylogist's public sector market coverage beyond the Canadian market to a truly international platform. The integration potential of Serenic products and Sylogist public sector products, offered through its Bellamy Software division, is significant. Serenic is also the primary provider, under license to Microsoft in North America and other international markets, of payroll and human resources software for public and private sector customers using Microsoft's largest accounting platform, Dynamics NAV ERP. The Serenic payroll and human resources software fits well within Sylogist's growth plans. The financial value of this acquisition is compelling, while the strategic value provides product affinities with other Sylogist' portfolio companies and a global growth platform. Through the acquisition, Sylogist also acquires approximately $4M in tax pools to enhance operating cash flow. We welcome to Sylogist the Serenic staff, customers and dealer network who are joining us in the United States, Canada and throughout the world," stated Jim Wilson, Sylogist's President and CEO.

About Sylogist

Sylogist is a technology innovation company which, through strategic acquisitions, investments and operations management, provides enterprise application software to public and private sector customers.

The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found on SEDAR and at

Forward-looking Statements

In this document and in other documents filed with Canadian regulatory authorities or in other communications, Sylogist may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation, including statements regarding Sylogist's business plans and financial objectives. These statements typically use words such as prospects, believe, estimate, forecast, project, expect, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. 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 forecasts, projections and other forward-looking statements 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. Sylogist cautions readers against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various material factors. Among other things, these factors include fiscal and economic policies, changes in interest and foreign exchange rates, and general economic conditions, legislative and regulatory developments, competition and access to capital. Sylogist further cautions that the foregoing list of factors is not exhaustive. For more information on the risks, uncertainties and assumptions that would cause Sylogist's actual results to differ from current expectations, please also refer to Sylogist's public filings available at Sylogist does not undertake to update any forward-looking statements, whether oral or written, made by itself or on its behalf, except to the extent required by securities regulations.

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

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