KITCHENER, ON, May 19, 2020 /PRNewswire/ - Quarterhill Inc. ("Quarterhill") (TSX:QTRH) (OTCQX:QTRHF) announces that it has completed an agreement (the "Agreement") to sell VIZIYA Corporation ("VIZIYA" or the "Company") for cash proceeds of $49.4 million to Prometheus Group ("Prometheus"), based in Raleigh, North Carolina. All dollar amounts are in Canadian dollars, unless otherwise stated.
Originally acquired by Quarterhill in June 2017, VIZIYA is a software and services provider that helps companies optimize their asset performance and uptime. The Agreement includes the sale of all the issued and outstanding shares of VIZIYA to Prometheus. Proceeds from the transaction will be used to support Quarterhill's growth initiatives.
"While VIZIYA has been a solid performer and we were not proactively looking to sell the Company, we believe this transaction provides several strategic benefits to Quarterhill," said John Gillberry, Chair of Quarterhill. "One, it generates significant cash proceeds and further strengthens our balance sheet. Second, it enables us to both drive our future growth and return some capital to shareholders, which will be the subject of an announcement on May 21, 2020, and, third, it delivers a strong internal rate of return (IRR) on our initial investment in VIZIYA."
"This transaction fits very well with our objectives to help customers optimize their asset performance and expand our presence in the asset management market," said Eric Huang, Founder and Chief Executive Officer of Prometheus Group. "VIZIYA has a robust suite of products and services, and a strong reputation among its clients in the asset-management market. We look forward to welcoming their team and their customers to Prometheus and to helping VIZIYA achieve its growth potential."