The deal would allow both the firms top scale up their business growth.
Calgary, Alberta, Canada based, Quorum Information Technologies Inc. recently made an announcement that it has completed the arm’s-length acquisition of Oasis Auto Complete Systems Limited pursuant to a share purchase agreement between both the entities.
Located in London, Ontario, Canada, Oasis’s customers include automotive dealers across Ontario. It develops, implements, and supports its Auto Complete Dealership Management System (DMS) and Advantage Showroom system for both franchised (or OEM) and independent automotive dealerships.
The transaction expands the new combined corporation’s scale and footprint in the automotive dealership software space. Oasis has 66 dealership rooftops, which increases Quorum’s combined dealership rooftop count to over 920 including Oasis, DealerMine, XSellerator DMS, and Autovance.
The Oasis team with deep industry experience and contacts would join Quorum. Moreover, the Oasis Advantage Showroom sales product will be the basis of a new system targeted at the Independent dealership market.
Quorum is expecting some economies of scale in the areas of industry events/memberships, government financing/programs, general and administrative expenses, and OEM relationships/programs across the combined entity.
Quorum to leverage Oasis’s goodwill
Maury Marks, President and CEO, Quorum, said, “We are thrilled to welcome Oasis and its team to the Quorum family. Oasis, under Scott Savage’s and Keith Gubler’s (co-owners of Oasis) leadership, has a proven track record of developing software for the North American retail automotive market. Scott, Keith, and the Oasis team will remain in place to manage the business from London, Ontario. We are delighted with the strong Oasis brand in the automotive retail market in Ontario and the company’s reputation among their dealership customers.”
Combined, the companies to enhance the growth of their newer Advantage product line
Scott Savage, Oasis, stated, “On behalf of the team at Oasis we are very excited to join Quorum and the resulting opportunities for our staff and our customers. The combined companies will be able to accelerate the growth of our newer Advantage product line, as well.”
The forward-looking strategy
For Oasis franchised dealership clients, the organizations plan to build a seamless conversion process that will include being able to use the Advantage Showroom system in conjunction with the fixed operations and accounting capability in Quorum’s DMS, XSellerator.
The financial details of the deal
As per the terms of the Agreement, Quorum will acquire all of the issued and outstanding shares of Oasis for consideration comprised of a combination of $485,000 in cash and $100,000 in Quorum shares and a $600,000, two year additional compensation earn-out provision.
