GlobeNewswire — Voxtur Analytics Corp. executed a purchase agreement on June 6, 2022 (the “Agreement”) for the acquisition of all of the issued and outstanding stock of Municipal Tax Equity Consultants Inc. and MTE Paralegal Professional Corporation (collectively “MTE”) (the “Acquisition”).
Completion of this arm’s length Acquisition is subject to the receipt of all required regulatory, corporate, and third-party approvals, including the approval of the TSX Venture Exchange (the “TSXV”), and is anticipated to close on or before July 1, 2022.
MTE provides municipalities with taxation finance software and technology-enabled services to ensure its clients maximize property tax revenue and mitigate future liabilities, optimize operations from emerging opportunities, and develop property tax policy frameworks.
“The acquisition of MTE strengthens Voxtur’s footprint as a trusted source of expertise for municipalities seeking maximum efficiency,” said CEO Jim Albertelli. “MTE is a market-respected company, and we look forward to integrating them into Voxtur’s industry-leading technology solutions and workflow management.”
Over the past five years, Voxtur’s Real Property Tax Analytics (“RPTA”) software analytics tool has helped progressive Ontario municipalities add almost a billion dollars of assessed value to their assessment rolls and tens of millions of dollars in net property tax revenues were generated for these municipalities, without increasing tax rates. MTE has been providing assessment base management to their many municipal clients across Canada for over 32 years. With the addition of MTE, Voxtur looks forward to equipping their advisors and consultants with this powerful and efficient analytic software tool to bring new revenue to their clients.
As the provinces emerge from the pandemic, municipalities across Canada will face unprecedented economic challenges. A stable assessment base with new revenues generated from underassessed properties will help mitigate these economic headwinds. The combination of MTE supported by Voxtur’s RPTA will allow municipal treasurers to maximize revenues from their tax base.
Financially, the Acquisition will add positive EBITDA immediately to the Company on a standalone basis and will be able to achieve additional cost synergies by integrating MTE into Voxtur’s technology infrastructure.
“We are pleased to become a part of the Voxtur organization, and look forward to all that we will accomplish together,” said Greg Powell, CEO of MTE. “We believe this was the right time to join forces as our clients are entering unprecedented times and experiencing stressed resources to manage new assessments and appeal workloads which account for their largest revenue source. The combination of our lengthy history in the industry and Voxtur’s best-in-class technology will allow us to better serve our clients.”
Consideration for the Acquisition will consist of up to $4,400,000 (the “Purchase Price”), to be paid In a combination of cash and common shares of the Company (“Common Shares”), subject to adjustment prior to closing, with $800,000 of the Purchase Price to be satisfied by the issuance of 808,080 Common Shares at closing, priced at $0.99 per Common Share, and $500,000 of the Purchase Price to be satisfied by the issuance of Common Shares subject to an escrow hold period of 18 months following closing of the Acquisition (the “Escrow Shares”), priced at $0.99 per Escrow Share. The amount of Escrow Shares to be issued following the escrow hold period are subject to adjustment. In addition, $500,000 of the cash portion of the Purchase Price will be subject to an escrow hold period of 18 months following closing of the Acquisition.
Completion of the Acquisition is not expected to impact financial guidance previously issued by the Company.
Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.