Quorum Information Technologies announces acquisition of VINN Automotive Technologies
by CM Staff
VINN is an automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while trying to help retailers sell more efficiently.
CALGARY — Quorum Information Technologies Inc., a North American SaaS Software company providing software that automotive dealerships and Original Equipment Manufacturers (OEMs) use for their operations, announces that it has closed the arms-length acquisition of VINN Automotive Technologies Limited – VINN. VINN is Quorum’s fifth acquisition in six years and marks another step forward in Quorum’s strategy to be a full-service provider to automotive dealerships.
VINN is an automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while trying to help retailers sell more efficiently. Quorum expects the acquisition to be accretive and profitable in the first year.
Key strategic reasons for this Transaction include:
- VINN provides dealerships with sales leads and Quorum’s integrated sales tools will try to ensure dealerships achieve a high lead close percentage.
- Quorum’s MyDeal product will transform VINN into a digital retailing marketplace.
- VINN can open new revenue streams for both Quorum and the dealership such as reanimating dealerships’ old sales leads to close missed sales opportunities.
- Quorum plans to leverage VINN’s $9.6 million of non-capital tax loss carry forwards.
Consideration for the Transaction is $0.75 million in cash with an 80% holdback pursuant to the terms of the Share Purchase Agreement. Quorum will utilize current cash reserves to fund the cash consideration.
“The VINN team has developed a state-of-the-art automotive marketplace and we look forward to working together to scale the business. We extend a warm welcome to the existing, valued VINN dealership customers and stand committed to expanding the number of quality sales leads we provide you,” stated Maury Marks, Quorum’s President and CEO. “The VINN marketplace will complement our dealership vehicle sales solutions as we continue to build our product suite capability beyond our DMS solution.”
“Quorum’s experience partnering with 1,433 dealerships across North America provides a logical home for the tools we’ve built at VINN,” stated VINN CEO Caleb Bernabe. “We’re excited to see our solutions continue to scale to vehicle shoppers, and the ability to further integrate with Quorum’s product suite offers the potential for VINN to deliver a best-in-class consumer experience.”
