Quorum Announces Acquisition of VINN Automotive Technologies Limited

CALGARY, Alberta, June 27, 2023 (GLOBE NEWSWIRE) -- Quorum Information Technologies Inc. (TSX-V: QIS) (OTC Pink: QIFTF) (“Quorum”), a North American SaaS Software and Services company providing essential enterprise solutions that automotive dealerships and Original Equipment Manufacturers (“OEMs”) rely on for their operations, is pleased to announce that it has closed the arms-length acquisition (the “Transaction”) of VINN Automotive Technologies Limited (“VINN”) - New & Used Cars for Sale | 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 a premier automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while helping retailers sell more efficiently. VINN provides a 5-star Google rated concierge service that assists consumers through the complex vehicle sales process. With key infrastructure already in place and by utilizing the strength of Quorum’s 1,433 dealership customers, Quorum expects the acquisition to be accretive and profitable in the first year.

Key strategic reasons for this Transaction include:

• VINN provides dealerships with valuable, qualified sales leads and Quorum’s integrated sales tools will ensure dealerships achieve a high lead close percentage.
• Quorum’s MyDeal product will transform VINN into a digital retailing marketplace.
• VINN’s 5-star concierge service 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.”