MARKHAM, ONTARIO--(Marketwired - Aug. 31, 2015) - VIQ Solutions Inc. ("VIQ", "VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS) is pleased to announce that the Corporation has entered into an agreement to acquire Dataworxs Systems Limited ("Dataworxs"), a leading international technology provider of digital audio dictation, document management and speech-to-text software solutions (the "Acquisition").
Pursuant to the terms of the Acquisition, the Corporation will be acquiring all of the issued and outstanding share capital of Dataworxs for an aggregate purchase price of CAD$575,000 (the "Purchase Price") to be satisfied by way of cash in the amount of CAD$300,000 ("Cash Consideration"); and balance of which shall be satisfied through the issuance of common shares (the "Shares") in the capital of the Corporation (the "Share Consideration") equal to the 20 day volume weighted average price of the Shares prior to the date of the closing date of the Acquisition.
The Corporation intends to fund the Cash Consideration of the Acquisition by way of a proposed non-brokered private placement up to $1.2M pursuant to terms which are currently being finalized (the "Financing"). The Acquisition and the Financing are scheduled to close on or before September 16, 2015, both of which will be subject to customary closing conditions, including the approval of the TSX Venture exchange.
Sebastien Paré, President and CEO of VIQ Solutions commented that "Dataworxs is an ideal and synergistic acquisition for VIQ and a crucial link in accelerating our growth plan and market diversification." Mr. Paré further noted that "Dataworxs is a successful, financially solid company with an extensive and well established digital customer footprint in key markets that VIQ is entering, with large numbers of customers in the medical, law enforcement, legal, and insurance markets, as well as many transcription clients. The Dataworxs acquisition will not only significantly increase VIQ's customer base in the US, Canada and Australia, but provides us with an additional source of recurring revenue and an incredible opportunity to expand the digital media solutions we offer to both VIQ's and Dataworxs' existing customers around the world."
Dataworxs' sophisticated product line includes digital dictation, telephony and voice recognition capabilities, solutions that complement VIQ's existing suite of digital audio and video capture, workflow management and collaboration software
"We have noticed a marked increase in customers looking for sophisticated telephony and voice recognition solutions, functionality that would have taken thousands of hours to develop independently," continued Mr. Paré. "The Dataworxs acquisition instantly complements VIQ's software offerings and provides a complete integrated solution that is unmatched in the marketplace and will fit in very strategically with our existing and new customers alike and to our combined resellers and integrators."
Dataworxs has a very talented team of digital media engineers, technical support and sales in the US, Canada and Australia that will complement VIQ's resources in North America, Australia and other partners around the world.
"We are delighted to become part of the VIQ Solutions team," said Daryl Duda, CEO of Dataworxs. "There exists a true synergy between our technologies, our teams and our future growth plans that, when combined, creates a formidable audio and video technology solution provider fully engaged in a diversified customer base that will capture the attention of the global market and advance the growth and performance of the new VIQ that is shaping up at the moment."
"I'm excited to be working closely with the Australian team of Dataworxs to offer our clients a full technology and transcription service model," added Matthew Fowler, Managing Director of Spark & Cannon. "The reputation of both Dataworxs and Spark & Cannon will deliver a commanding market position in Australia."
"This Acquisition is a reflection of the new direction we are taking as a company and a strong commitment to our change in strategy," emphasized Mr. Paré. "Dataworxs represents a significant advance in our accelerated growth plan and demonstrates a clear commitment to making it happen"
For more information on what is making the news at VIQ Solutions, please visit our website at www.viqsolutions.com/news.
About VIQ Solutions Inc.
VIQ Solutions is the global expert in digital recording technology. With a more effective approach to the collection, storage and management of digital audio, video and files, we help increase efficiency, improve security and reduce costs for courts, law enforcement agencies, insurance companies, health providers, and legislatures around the world. We've got the technology, the experience and the expertise to efficiently manage country-wide installations of hundreds of rooms, with hundreds of terabytes of data. Managing digital media evidence is what we do, and we do it better than anyone else. For more information about VIQ Solutions, please visit www.viqsolutions.com.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook.
Forward looking statements or information in this news release for the purposes of applicable securities laws include, among others, statements regarding the proposed Acquisition and the Financing, the anticipated timing of the closing of the Acquisition and the Financing, the operation and future performance of the Corporation subsequent to the completion of the Acquisition, the ability of the Corporation to complete the Financing and obtain regulatory approval for both the Acquisition and the Financing. These forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results, performance or achievements to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks factors include, among others the inability to complete the Financing or delays in obtaining or inability to obtain required regulatory approvals. The closing of the proposed Acquisition is subject to a number of conditions, some of which are outside the control of the parties involved. If those closing conditions are not satisfied, the Acquisition may not occur.
The Corporation expressly disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise except as required by applicable securities legislation. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.