Exela Technologies, Inc. · OTC:XELA
Exela Technologies — Quinpario Acquisition Corp. 2 — SPAC Merger (April 2017)
15 slides from Exela Technologies's SPAC merger presentation, Apr 3, 2017
Slide 1: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements Certain statements included in this presentation are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompani
Slide 2: Introduction
Introduction On February 21, 2017, SourceHOV, LLC, Novitex Holdings, Inc. and Quinpario Acquisition Corp. 2, announced a combination to form Exela Technologies (“Exela” or the “Company”) The formation of Exela will create one of the largest global providers of information and transaction processing
Slide 3: Exela Technologies is the Combination of Two Leading Business Services Franchises
Exela Technologies is the Combination of Two Leading Business Services Franchises Key Investment Highlights for Exela Leading single source global information and transaction processing company Technology enabled platforms providing mission-critical industry solutions to over 60% of the Fortune® 100
Slide 4: Exela Technologies Will Be a Leading Global Information Transaction Processing Platform
Exela Technologies Will Be a Leading Global Information Transaction Processing Platform Integrated EIM and TPS platforms enabling mission critical industry solutions and Transaction Processing Solutions Healthcare Solutions Payment Solutions Enrollments & Policy Management Scheduling & Prescription
Slide 5: Combined Business Model Overview
Combined Business Model Overview $543 38% Total ITPS $1,085 76% $542 38% Enterprise Information Management (“EIM”): data aggregation, eContent management, and data archival / retrieval Banking, Finance & Accounting (“F&A”), Payment, and Public Sector Solutions: clearing, sanctions, and cross-border
Slide 6: Combined Business Model Overview (Cont'd)
Combined Business Model Overview (Cont’d) $102 7% $248 17% Revenue cycle solutions, integrated accounts payable and receivables, and information management Processing and administration of legal claims settlements Project management support, notification to claimants Payer Solutions: claims processi
Slide 7: Exela Growth Strategy
Exela Growth Strategy SourceHOV and Novitex have invested significantly in their operations over the last years and have reached an inflection point in growth which will be magnified by the combination Strategic focus on growth through whitespace opportunities and increased customer penetration Focu
Slide 8: Financial Model Overview
Financial Model Overview Key Trends & Highlights Stable, core Adjusted Revenue of $1,435 million(1) and Adj. EBITDA of $350 million(1) in FY 2016 (24%+ margin) Contract renewal rates over 90% driven by customer loyalty due to best in class service and solutions as well as high switching costs Signif
Slide 9: Significant Near-Term Cost Synergies
Significant Near-Term Cost Synergies There are significant combination cost synergies between SourceHOV and Novitex across COGS, G&A and facility overlap, expected to be executed by Year 2 Information Technology 15% Consolidation of IT Management Savings related to consolidation of IT services Softw
Slide 10: Attractive Valuation Relative to Peers
Attractive Valuation Relative to Peers 2017E EBITDA Margin, Revenue Growth and EV / EBITDA Multiple share 11.0x – (6%) (4%) (2%) – 2% 4% 6% 8% 10% 2017E Revenue Growth Source: Factset as of 3/30/17, Company filings and press releases. Revenue and EBITDA shown pro forma for acquisitions and divestitu
Slide 11: Attractive Valuation Relative to Peers
Attractive Valuation Relative to Peers 2017E EBITDA Margin, Revenue Growth and EV / EBITDA Multiple 2017 EBITDA Margin @ sm Cy aw ow - 2% 6 6 2% 10% 2017E Revenue Growth sxc: ata of 13077, Conpny isd pes ress ee 2 ITO som pf fr acpins ond Stes Gh eon panto manape pase
Slide 12: Revenue and Adj. EBITDA Reconciliation
Revenue and Adj. EBITDA Reconciliation ($ in millions) 2016 Revenue SourceHOV ITPS SourceHOV HS SourceHOV LLPS Novitex $440 248 102 543 Pro Forma Revenue $1,333 Adjustment for Acquisition of TransCentra 102 Adj. EBITDA Pro Forma Net (Loss) Interest Expense, Net Income Tax Benefit Depreciation & Amor
Slide 13: Pro Forma Ownership
Pro Forma Ownership Number of Shares ($ in millions) % Ownership SourceHOV Shareholders Novitex Shareholders Public Shareholders PIPE Investors Founders 80.6 30.6 20.1 7.4 5.6 56% 21% 14% 5% 4% Note: Ownership table assumes QPAC2 Trust / PIPE investment of $275 million 15 Total capitalization 144.3
Slide 14: Technology | Insight | Innovation
Technology | Insight | Innovation 16
Slide 15: exela
exela Technology | Insight | Innovation
Quinpario Acquisition Corp. 2 — SPAC Merger (April 2017) on 6ix