#Canada #Montreal #Alithya #XRM Vision #Microsoft Dynamics

Alithya Expands Capabilities with Key Acquisition of XRM Vision

In a noteworthy development for the technology consulting sector, Alithya Group Inc. (TSX: ALYA) has announced its strategic acquisition of XRM Vision, a premier Microsoft partner specializing in Customer Relationship Management (CRM) and Project Portfolio Management solutions. This acquisition, valued at up to C$35 million, underscores Alithya's commitment to enhancing its Microsoft capabilities and expanding its service offerings.

The Significance of the Acquisition

XRM Vision is recognized for its expertise in implementing solutions powered by Microsoft Dynamics 365 and the Microsoft Power Platform. With a workforce of around 85 specialists operating in Canada and Morocco, the acquisition not only augments Alithya’s talent pool but also strengthens its position in the competitive landscape of digital transformation services.

Enhancing Service Offerings

Alithya aims to leverage XRM Vision's established expertise in various industry verticals including financial services, insurance, manufacturing, healthcare, and the public sector. This acquisition aligns with Alithya's growth strategy, focusing on higher-value service offerings and creating new opportunities to cross-sell services within XRM Vision’s existing client base.

“This acquisition is aligned with our strategic plan to find niche companies focused on higher value and complementary services for our clients,” said Paul Raymond, CEO of Alithya. The integration of XRM Vision's capabilities is expected to bolster Alithya’s commitment to asset-based solutions in its core industries.

Asset-Based Solutions

The acquisition introduces new asset-based solutions into Alithya’s portfolio, aimed at centralizing project management and enhancing financial oversight. These solutions are designed to assist project managers and finance departments in streamlining their processes, thus providing a more integrated approach to project management.

Expanding upon the Microsoft partnership, Alithya now has access to a larger pool of resources, empowering them to deliver a wider range of Microsoft Dynamics 365 applications, including CRM, Project Operations, and additional operational tools. This development enhances Alithya's ability to implement end-to-end solutions and improves efficiency through process mining and Microsoft Copilot technologies.

Strengthening Smart Shoring Capabilities

Furthermore, the acquisition enhances Alithya's smart shoring capabilities, which enable the company to offer cost-effective delivery options from its existing operations in Morocco. This positions Alithya to not only optimize its operations but also to tap into a broader talent base, thereby enhancing efficiency and scalability.

Leadership Vision

Both Paul Raymond and Bernard Dockrill, Alithya's COO, expressed enthusiasm about the integration of XRM Vision’s team into Alithya. They envision a collaborative environment that will empower both companies to leverage their synergies and expand their market offerings.

Félix Robitaille, the CEO of XRM Vision, also expressed his excitement regarding the acquisition, highlighting the mutual benefits that can arise from combined expertise and resources. “Our team’s deep knowledge in Microsoft Dynamics will amplify Alithya's capabilities and provide our team members with significant career advancement opportunities.”

Financial Terms of the Acquisition

The acquisition's financial terms include an initial payment of C$8.625 million at closing, with additional payouts structured over three years. Moreover, there's a potential earn-out payment which could add up to C$12 million, depending on the business performance post-acquisition. This structure allows for a comprehensive integration plan while ensuring that both parties remain aligned financially.

About Alithya

Founded on a commitment to digital transformation, Alithya embodies innovation and strategy in technology consulting. With a dedicated workforce, Alithya continues to grow, leveraging its collective intelligence to develop practical IT solutions for complex business challenges. The company aims to eliminate industry jargon in favor of a straightforward approach that benefits its clients significantly, all while maintaining a focus on sustainability and social responsibility.

In summary, the acquisition of XRM Vision is a strategic maneuver by Alithya to bolster its Microsoft-based capabilities, enhance service offerings, and reinforce its standing as a leader in digital technology services. As the integration process unfolds, stakeholders will be keenly watching the potential synergies and innovations that may emerge from this significant expansion.