DATA Communications closed its previously announced acquisition of BOLDER Graphics. In connection with the acquisition, DATA entered into a new $5 million senior term credit facility with Integrated Private Debt Fund, of which approximately $2 million was used to fund the up-front cash component of the BOLDER acquisition and repay shareholder loans, $2.6 million was 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.
BOLDER is a Western Canadian marketing communications business, tracing its roots back more than 40 years. Its core capabilities are in large-format digital printing, offering point of sale signage, corporate packaging, outdoor signage and vehicle graphics.
“The acquisition of BOLDER further strengthens our presence as Western Canada’s largest printer, while adding to our leading large format presence in the Canadian market,” said Michael G. Sifton, CEO of DATA. “We have now completed three acquisitions in 2017 which have added more than $45 million of annual revenue to our marketing communications business. This market is a strategic focus for us, and where we see strong opportunities for growth.”
DATA acquired BOLDER for a total purchase price of approximately $5.1 million, comprised of $2 million in cash paid on closing (including funds advanced in repayment of approximately $0.4 million of shareholder loans and transaction expenses), $1 million through the issuance of common shares of DATA, $1.1 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 post-closing adjustments, including working capital.
DATA is a provider of business communication solutions, bringing value and collaboration to marketing and operation teams across North America.