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SSC Security Services to acquire Avante Logixx

SSC Security Services Corp. announced that it has entered into an agreement to acquire Toronto-based Avante Logixx Inc.

Based on the arrangement, Avante shareholders will receive a combination of cash and common shares in the capital of SSC. The transaction is valued at an aggregate equity value of approximately $37.1 million.

In addition, SSC will assume approximately $9.4 million of Avante’s senior funded debt, which excludes $8.264 million of principal amount of unsecured convertible debentures held by certain subsidiaries of Fairfax Financial Holdings Limited.

“This is our third acquisition in just over a year, giving us critical mass across the country in the security business,” said Doug Emsley, chairman, president and CEO of Regina, Sask.-based SSC, in a statement. “This acquisition represents a critical step towards solidifying our position as a national player in both physical and cyber security services across Canada, coast to coast.”

“Given the clear alignment of mission, goals and culture between our two organizations, this transaction significantly improves our ability to drive even greater value and peace of mind for our customers, including the expanding opportunity that the cyber security platform creates,” added Craig Campbell, president and CEO, Avante. “This transaction provides the combined businesses significant access to growth capital and a synergy of opportunity to grow and fulfill the growth objectives that we know are possible in this industry, further enhancing long term shareholder value.”

According to the companies, this transaction will create the largest publicly-traded security company in Canada. The combined company is expected to be owned approximately 70% by current holders of SSC shares, and approximately 30% by Avante shareholders.

The transaction is subject to Avante shareholder approval at a meeting expected to be held in the second quarter of 2022, as well as customary closing conditions.