GuestLogix, Inc. (“GuestLogix” or the “Company”) has entered into a definitive transaction agreement in respect of the acquisition of its Onboard business by a Canadian investor group with a strong track record of investing in high-growth technology businesses, comprised of Stornoway Portfolio Management Inc., Bridgecorp Canada Inc., Logan Peak Capital Inc. and Klass Capital Corporation (the “Transaction”).
“We are very pleased to enter into an agreement that will mark a new chapter in the growth of GuestLogix. Our group, made up of successful professional investors and technology entrepreneurs, shares a long-term vision of building GuestLogix into a leading Canadian technology vendor for the travel industry. We look forward to working closely with the Company’s customers, industry partners and its talented employees to deliver an exceptional onboard transaction experience, from a renewed and stabilized platform,” said Scott Reid, President of Stornoway Portfolio Management Inc., on behalf of the investor group.
GuestLogix continues to be the largest onboard retail technology provider to the travel industry by number of customers and total global passenger trips served by its retail solution. The Company will refocus exclusively on the onboard retail experience by way of its next generation onboard retail platform and mobile-based solutions that are currently in use by several of the world’s leading airlines.
Following the completion of the Transaction, the Company will continue to operate as GuestLogix Inc. and its head office will remain in Toronto, Ontario. Upon closing, GuestLogix will be well capitalized and well positioned to execute on its growth plan.
The Transaction resulted from the previously announced court-approved sale and investment solicitation process conducted under the Companies’ Creditors Arrangement Act (the “CCAA”) under the supervision of PricewaterhouseCoopers Inc., the court appointed monitor, and the direction of the Board of Directors of the Company with the assistance of Canaccord Genuity Inc., the financial advisor to the Company.
The Transaction is subject to approval of the Ontario Superior Court of Justice (the “Court”) and will be implemented through the acquisition of the shares of GuestLogix in connection with a CCAA plan of compromise and arrangement in respect of the Company (the “Plan”). The Company intends to seek Court approval of the Transaction on July 13, 2016, following which it will take the steps and actions necessary to implement the Plan and the Transaction. Additional terms of the Transaction will be disclosed as the Transaction progresses, applicable approvals are obtained and the Transaction is completed. Closing of the Transaction is scheduled to occur on or before September 30, 2016 following the receipt of required approvals and the satisfaction of closing conditions.
About the Investor Group
Stornoway Portfolio Management, Inc.
Stornoway Portfolio Management, Inc. (“Stornoway”) is a private investment firm that specializes in creating and capturing value from the revitalization of companies requiring an operational or financial turnaround. Stornoway takes an active approach to investing by harnessing existing and nurturing new partnerships necessary to rebuild companies into sustainable businesses, adding value and providing stability to customers, employees, and other stakeholders.
Logan Peak Capital, Inc.
Logan Peak Capital, Inc. provides growth equity and debt capital to businesses in the technology, consumer, and real estate industries. The firm also provides advisory services to growth-oriented companies seeking assistance with strategic and financing initiatives.
Klass Capital Corporation
Klass Capital Corporation (“Klass”) is a Toronto-based private equity firm that acquires and provides growth capital to mission-critical enterprise software businesses. The firm invests between $2 20 million of equity in businesses that have achieved over $1 million in sales. Klass moves quickly, has a collaborative approach and strongly believes in adding value to its partners. Klass has built a portfolio of 15 high-growth enterprise software businesses.
About GuestLogix, Inc.
GuestLogix, Inc. (guestlogix.com), is a global leader in comprehensive onboard merchandising, payment and business intelligence technology delivered to the passenger travel industry. Bringing over a decade of expertise as the industry’s most trusted onboard transaction processing partner to airlines, rail operators and elsewhere in the passenger travel industry, GuestLogix powers the industry’s growing reliance on ancillary revenue generation. Both direct to operators as well as through partnerships with global leaders in catering, duty-free, inflight entertainment and self-service retail experts, the Company provides the payment services touching over 1 billion travelling consumers each year. GuestLogix' global headquarters and centre for product innovation is located in Toronto, with regional offices located in Dallas, London, and Hong Kong, and a product innovation lab located in Moncton.
© 2016 GuestLogix. All Rights Reserved.
This news release contains certain statements that constitute forward-looking statements under applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may”,“will”,“should”,“expect”,“plan”,“anticipate”,“believe”,“estimate”,“predict”,“potential”,“continue”, or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and the Company does not undertake to publicly update these forward-looking statements except in accordance with applicable securities laws. Forward-looking statements, including but without limitation, statements concerning the timing and completion of the Transaction are based on current expectations, estimates, projections and assumptions, which the Company believes are reasonable but which may prove to be incorrect and, therefore, such forward-looking statements should not be unduly relied upon. These forward-looking statements involve known and unknown risks, uncertainties which may cause actual results or performance to be materially different from any future results or performance expressed or implied herein. The forward‐looking information included in this press release is expressly qualified in its entirety by this cautionary statement. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.