Profile of an Acquisition

Quarterhill’s acquisition strategy focuses on acquiring businesses with growth potential, managing them well, and building them to generate significant revenue growth and cash flows. These cash flows will then be used to reinvest in the business and continue the growth cycle.

Our efforts will be directed towards companies with strong financial dynamics, firmly grounded in innovation, and with solid management teams operating in large or niche vertical markets. This strategy will allow us to increase our overall product portfolio, increase revenues and cash flows, and build a growth company.

We will seek organic growth in our existing businesses once acquired. We’ll also look at tuck in acquisitions that can be part of those same businesses providing incremental growth. And, of course, new acquisitions will continue to add to the overall mix.

Vertical Market Focus

Quarterhill will pursue Industrial IoT opportunities that can be broadly classified under the headings: mobility, city and factory.

Mobility covers a variety of transportation modes such as rail, marine, automotive and aviation and infrastructure like highways. By connecting vehicles to networks, Industrial IoT applications allow for improved safety and traffic flow. More efficient and secure shipping of goods across the globe by air, land and sea are another major benefit. Knowing where products are in the supply chain in real time enhances the utility of purchasing and shipping decisions.

City includes areas like building automation, traffic control, water and wastewater management, and emergency response. Municipalities can use Industrial IoT to make budgets go further based on highly detailed consumption patterns for energy and services. IoT also enhances public safety by coordinating emergency response based on real time data from the scene of an accident. Industrial IoT’s ability to allow for better understanding and anticipation of traffic flow for cars and public transit reduces congestion and helps cities work smarter.

Factory involves connecting machines and sensors in a range of industrial activities including advanced manufacturing, mining, and oil and gas. Repair and maintenance of industrial equipment is transformed under Industrial IoT. Downstream monitoring of assembly lines and other activities helps to make downtime an anomaly. With Industrial IoT, productive assets operate in an environment that maximizes their ability to deliver value by moving beyond preventative maintenance to predictive maintenance.

Our Criteria

  • Companies with a growing revenue and earnings base of at least 10% a year
  • EBITDA in excess of $2 million per year
  • Large established customer base
  • Management teams that are committed and will continue operating their company post acquistion

For further information, contact:
John Varghese, Senior Vice President, Corporate Investments
416.865.1611
jvarghese@quarterhill.com