DATA Communications Management has acquired privately-held BOLDER Graphics.
In connection with the acquisition, DATA has entered into a commitment letter for a new $5 million senior term credit facility with Integrated Private Debt Fund (IPD), of which approximately $2 million will be used to fund the up-front cash component of the BOLDER acquisition and repay shareholder loans, $2.6 million will be used to repay in full the outstanding balance of the term loan sub-facility of the company’s senior revolving credit facility with a Canadian chartered bank, and the balance will be used for general working capital purposes.
“We are pleased to welcome the BOLDER family to DATA,” said Michael G. Sifton, CEO of DATA. “BOLDER’s customer base of leading western Canadian retailers and other brands will benefit from our own capabilities in Calgary as well as our national footprint and technology solutions,” he continued.
DATA will acquire BOLDER for a total purchase price of approximately $4.9 million, comprised of $2 million payable in cash on closing, $1.0 million through the issuance of common shares of DATA, $1 million in the form of a subordinated, unsecured 6.0% interest-bearing vendor take back note to be payable over a 24-month period and the assumption of approximately $1 million in outstanding long-term indebtedness. The purchase price will be subject to certain closing adjustments relating to working capital.
Closing is expected to occur on or about November 10, 2017 and is subject to customary closing conditions.
DATA is a provider of business communication solutions, bringing value and collaboration to marketing and operation teams across North America.
BOLDER is a western Canadian marketing communications business.