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GuestLogix Inc. Enters Into Agreement for the Acquisition of its Onboard Business
July 6, 2016
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.