- Uniserve Communications (TSXV:USS) has closed its acquisition of the business and assets of Cyclone Systems Inc.
- Cyclone, a full-service managed IT services provider, has a client base that spans multiple provinces and can align with Uniserve’s existing service offerings
- The acquisition is expected to significantly boost Uniserve’s financial performance, adding approximately C$2.5 million in top-line revenues and C$800,000 in earnings before amortization, interest, and taxes annually
- Uniserve Communications stock (TSXV: USS) last traded at $0.28
Uniserve Communications (TSXV:USS) has closed its acquisition of the business and assets of Cyclone Systems Inc.
Cyclone, a full-service managed IT services provider, has a client base that spans multiple provinces and can align with Uniserve’s existing service offerings.
The acquisition is expected to significantly boost Uniserve’s financial performance, adding approximately C$2.5 million in top-line revenues and C$800,000 in earnings before amortization, interest, and taxes annually. This move can enhance Uniserve’s service offerings and expands its market reach, marking a significant step forward in the company’s growth strategy.
In a media release, management explained that the transaction was completed under an Asset Purchase Agreement dated January 24, 2025. The purchase price of C$2.35 million included C$1.35 million paid in cash at closing, with the remaining C$1 million covered by a convertible note with a three-year term, bearing annual interest at 6 per cent, payable monthly.
To help fund the purchase, Uniserve borrowed C$1 million from an affiliate of an insider.
In the three years following the transaction, Uniserve may elect to pay up to 50 per cent of the outstanding principal sum under the note. Cyclone may choose to convert half of the proposed prepayment amount into common shares of Uniserve.
Uniserve Communications Corp. is a provider of IT solutions and services for both business and residential customers across Canada.
Uniserve Communications stock (TSXV: USS) last traded at $0.28.
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