JD Merit & Company served as buy-side advisor to Quarterhill in its acquisition of ETC
JD Merit & Company, a leading middle market boutique investment bank, is honored to have served as buy-side advisor to Quarterhill in its acquisition of Electronic Transaction Consultants.
By: JD Merit & Company
DALLAS & SEATTLE - Sept. 8, 2021 - PRLog -- JD Merit & Company (JDM) is pleased to have served as buy-side advisor to Quarterhill (QRTH.TO) in its acquisition of Electronic Transaction Consultants (ETC). This industry transformative transaction illustrates the importance of JD Merit's global network, long-term relationships, and expertise in Intelligent Transportation Systems (ITS) and tech-enabled services.
In July 2020, amid the Covid pandemic, JDM in collaboration with our partners at CDI Global Italy, successfully represented Atlantia S.p.A, as its sell-side advisor in the divestiture of ETC to Align Capital Partners (ACP), an active lower-middle market private equity firm with a strong Dallas presence.
Since acquiring ETC in July 2020, ACP worked diligently with management to streamline operations, fortify the C-suite, secure significant new clients, and position the business for rapid growth. Executing on these initiatives helped position an exit conversation far earlier than management or ACP had planned.
Due to its unique insight into how intelligent infrastructure is reshaping global transportation, JDM reached out to Quarterhill with the idea of pursuing an acquisition of ETC. As a result of its relationships with all the parties, JDM was able to demonstrate the strategic fit, articulate compelling transaction rationale, and negotiate a deal where all parties, including ETC's state and local government clients, greatly benefit.
Bret Kidd, CEO of ETC commented, "the JD Merit team was instrumental in helping ETC find the right partner at each phase of growth over the past year which culminated in the deal with Quarterhill, which I firmly believe will help ETC be a driving force in smart mobility for years to come." JDM's approach was thoughtful and methodical and made all the stronger with the creativity and tenacity demonstrated by its Chairman, Joe Durnford, who led both transactions. In the first transaction, JDM had to navigate an extremely complicated set of sellers, often requiring delicate maneuvers to keep the process alive. Then, JDM kept up the momentum in the face of a global pandemic to secure a compelling deal for Atlantia ETC."
"In the second transaction with Quartherhill, JDM found the perfect 'forever home' for ETC, a publicly-traded holding company with plans to invest hundreds of millions of dollars in our industry, while also allowing ETC to maintain its identity and autonomy," said Kidd. "From the very beginning, JDM ensured that there was a process that worked for all parties and a set of incentives that worked for the management team. That dual track was essential to success, and I truly can't thank Joe enough for his support in getting us to this point."
Marco Allegretti, of McKinsey & Company and formerly Atlantia M&A Executive responsible for leading the sale of ETC to ACP in 2020, commented that "JDM's transaction leadership enabled Atlantia to achieve an outcome that had alluded it for nearly 3 years while in the midst of the Covid crisis. Timing is key particularly in such volatile times, but I noticed the difference JDM made with its creativity and hard work - that is the difference between simple transaction advisory and real value-creating advisory."
Paul Hill, CEO Quarterhill stated that "when Joe first contacted us, I was impressed by his understanding of our vision to build a global Intelligent Transportation Systems ("ITS") leader. Joe's relationships with ETC's management and with ACP enabled us to navigate what became a competitive process, and ultimately prevail in acquiring a business we believe will be transformative not just for Quarterhill, but the future of ITS and how intelligent infrastructure is built and funded."
About JD Merit:
JD Merit & Company is a Boutique Investment Bank that brings sophisticated solutions to middle-market privately held companies seeking to create, protect, transfer, and gain liquidity of wealth. Our firm executes sell-side M&A, buy-side M&A, and capital advisory transactions with specific emphasis on the technology, software, consumer, telecom/wireless, and specialty manufacturing verticals. We combine decades of deal-making experience, technical expertise, tenacity, creativity, and dedication to ensure not only that a client's transaction closes, but that it is a win for all parties. We deliver market-leading outcomes by applying the integrity, intelligence, insight, instinct, and intensity of a trusted advisor, with no conflicts.
Our team has completed numerous SaaS, software, and technology-enabled business service company transactions, and we are happy to share our insights on valuation, transaction trends, and what it takes to capture premiums outcomes in today's competitive market. Please contact our Chairman and Sr. Managing Director, Joseph Durnford, to discuss how JD Merit & Company may be of help to you, all conversations will be strictly confidential.
Learn more at www.jdmerit.com
Chairman / Sr. Managing Director