Uniserve Communications Agrees To Purchase Private Cloud Solutions Provider For C$3.75M

Uniserve Communications Corp USS entered into a Letter of Intent dated March 2, 2022, to purchase all of the issued and outstanding shares of a Vancouver area-based Private Cloud Solutions provider focused on the provision of hosted applications and virtual desktops.
The provider offers secure managed physical terminals to customers, which provides peace of mind through hardware standardization and fixed monthly costs.
The purchase price is expected to be C$3.75 million, payable 75% in cash and 25% via convertible note expiring four years from closing.
Uniserve Communications will not be assuming any long-term debt of the Private Cloud Solutions provider.
The company expects the transaction to close within the next 85 days.
"The acquisition of this Vancouver area based Private Cloud Solutions provider will further enhance the depth of cloud services being offered by Uniserve and further support the growth of our recurring revenue based service offerings," said CEO Kelly Walker.
USS held cash in hand of C$1.12 million as of November 30, 2021.
Price Action: USS shares are trading lower by 6.25% at C$0.15 on TSXV on the last check Wednesday.