Alithya buys IT consultancy R3D Conseil for $76 million
Alithya, a Montreal-based IT consultancy, has acquired R3D Conseil, another Montreal-based IT consultancy, for $76 million.
Founded in 1996, R3D Conseil provides digital application development and consulting services to clients in financial services, insurance, healthcare, telecom, and government. The firm’s offerings includes business analysis in IT system management, strategy and governance, IT change management, application development, web and mobile development, cloud computing, and industry 4.0 solutions.
The firm has Canadian offices in Montreal, Quebec City, and Toronto, as well as international locations in Troy, Michigan; Paris; and Mexico City. The firm’s revenues in 2020 were $63 million.
Alithya’s acquisition of R3D will add 600 experienced Quebec-based professionals, according to a release from the firm. The deal will also add a backlog of $600 million in service agreements through to 2031 with Québecor and Beneva – two of R3D’s indirect principal shareholders.
The purchase price of $76 million will be paid with 25,469,535 class A subordinate voting shares of Alithya – which represents approximately 30% of the company’s issued and outstanding shares. Québecor and Beneva will each take an 11.9% of Alithya’s share capital. Investissement Québec, an existing shareholder of Alithya, will increase its stake to 8.7%.
Alithya says the transaction will result in the creation of over 350 new jobs in Quebec for IT consultants specializing in insurance and telecom. It will also result in the creation of a new Quebec City-based digital excellence centre for the insurance industry.
"We are delighted to announce these transformative agreements with new strategic customers, and very pleased to welcome 600 seasoned professionals from R3D Conseil, as well as R3D Conseil's other customers,” Paul Raymond, president and CEO of Alithya, said.
Guy LeBlanc, president and CEO of Investissement Québec, added, "We are proud to once again affirm our support for Alithya by giving the organization the backing it needs to deploy its growth strategy and make this major acquisition happen. With this transaction, Investissement Québec is actively contributing to the development of our digital transformation expertise, as well as helping create many new skilled jobs in a strategic sector undergoing rapid expansion."
Alithya has 2,200 employees across a dozen offices in Canada, the US, and France. The consultancy offers business strategy, application services, enterprise solutions, and data and analytics services.
Alithya earlier this year acquired Askida, a technology consultancy with more than 110 employees in Montreal and Toronto. The firm late last year bought Travercent, a Dallas-based consulting firm focusing on Oracle cloud implementation for healthcare sector clients.
