QUES just became our top pick of the year...
...huge news, another merger, QUES to acquire another profitable company that does $26 million....pro forma revenue will be $85 million (at least) in 2015.
Payment for the deal is in QUES shares valued at $2~
This is the 2nd deal in 6 months of a substantial growing profitable company that QUES has done with SHARES at 5 times and now 7 times ABOVE MKT price
How many companies can you think of that do such deals WITHOUT massive dilution, without paying shares at mkt price????????
Why do these companies accept shares so out of whack with the current price?
They MUST know or must BELIEVE that $2 is a bargain, or they wouldn't be doing these deals...
Quest Solution Enters LOI to Merge with Canadian Company, ViascanQData
Merger Provides Quest Solution Full North America Coverage, Increased Market Share and Significantly Expanded Label Business
HENDERSON, NV / ACCESSWIRE / May 14, 2015 / Quest Solution, Inc, "The Company" (OTCBB: QUES), announced today that the Company has entered into a Letter of Intent (LOI) to merge with ViascanQData ("Viascan") a leading provider of Data Collection and label-ribbon converter services and technology.
ViascanQData currently serves in excess of 4,000 enterprise customers, mainly in Canada. Unaudited financials indicate annual revenues of about CDN$28 million (approximately $24 million USD), and ViascanQData is currently on track to deliver unaudited double digit EBITDA for 2015. The Company estimates the proforma revenue for the combined entities for 2014 would have been approximately US$83 - 85 million.
The combination is expected to provide a significant discount across Quest's robust label business through the addition of ViaScanQData's purchasing volume. While Quest's previous combination with BCS Solutions was 30% labels and 70% hardware, ViascanQData is approximately 55% labels and 45% hardware. ViascanQData leases a 44,000 square foot facility in Ontario and a 21,000 square foot facility in Montreal and is one of the largest suppliers of labels and ribbons along with being one of the main suppliers of data collection products and services in all of Canada.
Once the transaction is completed, Quest Solution will have a sales force in excess of 45 experienced professionals servicing three countries and strengthened operations management team. All Quest employees will look to provide the Company's growing suite of services to all customers of Quest, BCS and ViascanQData.
"ViacanQData is an ideal and complementary addition to Quest Solution," said Tom Miller, Chief Executive Officer of Quest Solution, Inc. "ViascanQData is a proven leader throughout Canada and will blend synergistically into our model. We expect to enjoy immediate buying power benefits (from their label expertise) and on critical supplies, an influx of managerial and sales talent, and perhaps most importantly, access to customers to whom we expect to offer additional services and solutions."
"The fit with Quest is something we are extremely excited about," said Gilles Gaudreault, CEO of ViascanQData.
"ViascanQdata, especially with its new manufacturing facility in Ajax, Ontario was ready to aggressively enter the American market which was part of the strategic growth plan from management. Merging with Quest is a giant leap in that direction. Quest market coverage, synergies, sales force and management philosophy was at the heart of our decision. We know that together our growth path is just at its beginning."
Denis Kurdi, founder of ViascanQData added "I am delighted by the synergies created by this transaction. We now have the ability to offer, to our mutual customers, a more complete products offering from a single source. The 'no borders' approach will be a unique differentiator to grow the company."
Viascan shareholders will receive approximately 5.2 mm restricted shares of Quest Solution's common stock as consideration for the transaction.
The Company valuation was determined based on a CDN$13,000,000 valuation at the USD$2 price used in the combination with the company's acquisition of BCS Solutions in November 2014.
The Company expects to close this transaction within the next 60 days.