Sylogist to transition leadership, as CEO plans retirement at fiscal year end; undertakes strategic review

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CALGARY, March 12, 2020 /CNW/ - Sylogist Ltd. (TSXV:SYZ) ("Sylogist" or the "Company") advises that Jim Wilson has announced his retirement as President & Chief Executive Officer of the Company to be effective at the end of the Company's fiscal year, being September 30, 2020. 

Mr. Wilson has served Sylogist for over 17 years.  During his tenure, the Company increased its market value more than a thousand fold and its share price more than 350 fold.  Sylogist has been transformed from a money-losing, project-based reseller of third party software to a highly profitable, Software-as-a-Service organization, owning its intellectual property and generating the vast majority of its business from stable and recurring revenue agreements with over 1500 public sector and private sector organizations.  In addition to share performance, during the past 10 years, Sylogist has returned over $90 million to shareholders in dividends and share repurchases.

The Board of Directors commented "This is an appropriate time to transition leadership of the Company and to build an aggressive growth strategy for the next decade based upon the solid foundation laid under Mr. Wilson's leadership.  Sylogist is extremely well positioned, with recurring and accelerating cash flow, highly satisfied customers and a suite of modern, proven technology that targets a large public sector marketplace.  Armed with a well established operational footprint in North America and a strong balance sheet, the Company is poised for growth, both organically and by acquisition."

The Company is indebted to Mr. Wilson who has dedicated many years of service contributing to the remarkable success of the business.  We thank him for his continued support and vision.

As a result of the forthcoming leadership transition, the Board of Directors has undertaken a strategic review to set the course for the future of the Company.  Strategic elements being considered include: (1) recruiting a senior leader or leadership team to drive growth principally and initially in the United States, where the vast majority of the Company's customers and market opportunities reside, (2) strengthening and diversifying the Board of Directors and (3) evaluating other options and opportunities, including strategic alternatives, to maximize shareholder value.

The Board of Directors has formed a Nominating and Governance Committee, consisting of Jim Wilson, David Elder, Taylor Gray and Barry Foster, whose duties include all executive and board member recruitment initiatives, as well as board committee structures, mandates and recommended appointments.

The Board has engaged Shea & Company, a San Francisco-based boutique M&A adviser, specializing in enterprise software with extensive reach across North America and beyond in public sector technology, to assist in its market assessment of strategic opportunities and alternatives to enhance shareholder value.

Sylogist has no knowledge or expectations of what developments may occur with respect to any of its various initiatives and, except as required by law, does not intend to make any further announcements in this regard unless or until any material information becomes releasable. The Company cautions that there are no guarantees that a strategic opportunity or alternative or any initiative will be pursued or undertaken.      

About Sylogist

Sylogist is a software company that, through strategic acquisitions, investments and operations management, provides comprehensive, mission-critical ERP solutions, including fund accounting, grant management and payroll, to public service organizations.  Sylogist's public service customers include local governments, non-profit organizations, non-governmental organizations, educational institutions and government agencies, as well as public compliance driven and funded entities. Our Company delivers highly scalable, multi-language, multi-currency software solutions, which serve the needs of an international clientele.

The Company's financial statements together with Management's Discussion and Analysis are available on SEDAR at www.sedar.com.

The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.

Forward-looking Statements

Certain statements in this news release may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements typically use words such as expect, believe, estimate, project, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. Forward-looking information in this news release includes statements with respect to this being the ideal time to transition leadership of the Company, to build an aggressive growth strategy for the next decade based upon the solid foundation laid under Mr. Wilson's leadership,  Sylogist being in extremely well positioned, with recurring and accelerating cash flow, highly satisfied customers and a suite of modern, proven technology that targets a large public sector marketplace,  the Company being poised for growth, both organically and by acquisition, the Company's Board of Directors having undertaken a strategic review to set the course for the future of the Company and the Company having engaged an advisor to assist in its market assessment of strategic opportunities and alternatives to enhance shareholder value.  By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the beliefs and plans and other forward-looking expectations expressed herein will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Additional information regarding some of these risks, uncertainties and other factors may be found under in the management's discussion and analysis for the year ended September 30, 2019, and other documents available on the Company's profile at www.sedar.com.  Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include Sylogist's inability to retain satisfactory executive leadership or board nominees, as well as its inability, in conjunction with its agent, to realize opportunities or alternatives to enhance shareholder value.  Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

- Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release-

SOURCE Sylogist Ltd.

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