Acquiring supply chain provider will enhance Pivotree’s ability to deliver end-to-end frictionless commerce solutions
TORONTO, August 26, 2021 – Pivotree Inc. (TSXV: PVT) (“Pivotree” or the “Company”), a leading provider of frictionless commerce solutions, is pleased to announce that it has entered into a definitive agreement (the “Transaction”) to acquire Bridge Solutions Group Corp (“Bridge Solutions Group”), a supply chain service provider and Pivotree partner specializing in order management services, warehouse management services and application integration. The acquisition will transform Pivotree’s ability to deliver end-to-end frictionless experiences for customers by providing a single entity to manage their commerce operations.
With the acquisition of Bridge Solutions Group, Pivotree will add and build on the Yantra Commerce solution set, including the Yantra WMS, IMS, and Control Tower products that provide visibility, analytics, and supply chain integration tools tailored to real-world IT and business needs. This comes in addition to Pivotree’s proven solutions and capabilities in business process transformation, security, and Cloud platforms.
“Over the next five years, retailers and brand manufacturers will be faced with the challenge of competing with huge digital players like Amazon and Walmart while encountering unprecedented global supply chain disruptions that add friction to building customer and brand loyalty. By acquiring Bridge Solutions Group, Pivotree is in a position to help our clients build even more flexible, agile systems to compete in any commerce environment. We’re excited about the products and capabilities that this acquisition will bring, enabling transformational digital experiences for our customers and partners,” said Bill Di Nardo, CEO of Pivotree.
“Today is a day like no other for the Bridge Solutions Group team. Pivotree is a global leader in frictionless commerce and an important strategic partner, and joining forces allows us to deliver on our shared vision for commerce innovation. We look forward to combining our team of seasoned business and IT experts and helping the world’s leading organizations achieve the near-limitless opportunities around frictionless commerce,” said Doug Brochu, CEO of Bridge Solutions Group.
Bridge Solutions Group was founded in 2010 and boasts global delivery expertise with offices across North America and India. Bridge Solutions Group services an impressive roster of Fortune 500 companies and leading retailers. Bridge Solutions Group is both an IBM Premier Business Partner and Fluent Commerce partner.
For the trailing twelve-month period ended June 2021, Bridge Solutions Group generated revenue of USD$8.1 million, with approximately 29% of its revenue generated from managed services and 71% from professional services. Bridge Solutions Group’s 2021 total gross profit margin percentage to date is greater than 45%, and over the past 3 years has experienced strong growth in demand for its solutions with a revenue compound annual growth rate (CAGR) in excess of 17% (based on H1-2021 run-rate revenues).
Under the terms of the Transaction, a total purchase consideration of USD$6.0 million will be paid in connection with the closing of the Transaction, consisting of USD$5.0 million in cash and 194,459 common shares of the Company. In addition, the sellers may be entitled to receive additional earn-out payments subject to the satisfaction of certain gross profit growth targets for the 2021 and 2022 fiscal years.
The Transaction is expected to close within the next 10-14 days, subject to the satisfaction of all conditions of closing, including receipt of approval from the TSX Venture Exchange and all other applicable third-party approvals. All common shares of the Company issued under the Transaction will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws.
Pivotree is a leader in frictionless commerce with expertise in eCommerce, MDM, Cloud, Cybersecurity, and Supply Chain solutions. It is an end-to-end vendor supporting clients from strategy, platform selection, deployment, and hosting through to ongoing support. It operates as a single expert resource to help companies adapt relentlessly in an ever-changing digital commerce landscape. Leading and innovative clients rely on Pivotree’s deep expertise to choose enterprise-proven solutions and design, build, and connect critical systems to run smoothly at defining moments in a commerce business. Pivotree serves as a trusted partner to over 170 market-leading brands and forward-thinking B2C and B2B companies, including many companies in the Fortune 1000. With offices and customers in the Americas, EMEA, and APAC, Pivotree is widely recognized as a high-growth company and industry leader around the globe. For more information, visit http://www.www.pivotree.com.
About Bridge Solutions Group
Founded in 2010, Bridge Solutions Group helps organizations craft superior delivery experiences for its customers. Its global team of supply chain experts helps leading companies succeed in the areas of omnichannel fulfillment strategy, solution design and implementation, managed services, project and program management consulting, and business process consulting. For more information, visit http://www.bridgesgi.com.
For further information, contact:
Sarah Kirk-Douglas, Vice President of Marketing, Pivotree, [email protected], 905-251-6502
Dennis Fong, Investor Relations, Pivotree, [email protected], (416) 283-9930
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information“) within the meaning of applicable securities laws. Forward-looking information may relate to the Company’s future financial outlook and anticipated events or results and may include information regarding the Company’s financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, and dividend policy, plans, and objectives. Particularly, information regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities, or the markets in which the Company operates is forward-looking information.
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