Exela Technologies, Inc. · OTC:XELA
Exela Technologies — Quinpario Acquisition Corp. 2 — SPAC Merger (February 2017)
25 slides from Exela Technologies's SPAC merger presentation, Feb 22, 2017
Slide 1: February 2017 Investor Presentation
February 2017 Investor Presentation MOELIS: Cover/Global – according to the press release the PF company will be called Elexa Technologies. Shouldn’t that be somewhere in the deck – probably the first time we mention the combined entity ? IGNORED HGM : - “high switching costs" to "high customer loya
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer 2 Forward Looking Statements Certain statements included in this communication 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 a
Slide 3: Disclaimer: Additional Information about the Transaction
Disclaimer 3 Additional Information about the Transaction and Where to Find It In connection with the proposed mergers, Quinpario will file a preliminary proxy statement with the SEC and will mail a definitive proxy statement and other relevant documents to its stockholders . Investors and security
Slide 4: Table of Contents
4 Table of Contents Transaction Overview SourceHOV Overview Financial Summary Key Investment Highlights & Combination Rationale Novitex Overview
Slide 5: Two Leading Business Services Franchises
1 Company Overview Two Leading Business Services Franchises… 2017E Revenue $927 million Pro Forma Client Base 2017E Adj. EBITDA 5 Both SourceHOV and Novitex provide critical business processes SourceHOV Novitex Services / End Market Mix Services Offered Geographic Footprint and Scale $ 600 million P
Slide 6: Creating a Publicly Traded Best-in-Class, High Free Cash Flow Platform
1 Company Overview Creating a Publicly Traded Best - in - Class, High Free Cash Flow Business Services Platform Strong Industrial Logic ▪ Creates leading Business Services and Fintech platform delivering mission critical, tech - enabled information service offerings to over 3,500+ blue - chip custom
Slide 7: Sources & Uses and Pro Forma Capitalization
1 Company Overview Sources & Uses and Pro Forma Capitalization 7 Notes 1. QPAC2 Trust may increase cash in trust up to $350m at the closing of this transaction 2. Based on total pro forma EBITDA of $385M, including pro forma impact of estimated low case annual synergies of $37.5 million in 2017E. De
Slide 8: Favorable Industry Comparables and an Attractive Valuation
92.5% 89.0% 86.7% 85.4% 84.2% 82.7% 82.3% Novitex Healthcare Processing MergeCo Trxn. Proc. Fin. Services Tech SourceHOV Multi-Shore BPO 9.3% 7.2% 5.1% 4.6% 4.6% 3.9% 3.5% Multi-Shore BPO Healthcare Processing SourceHOV MergeCo Fin. Services Tech Novitex Trxn. Proc. 35.4% 27.1% 25.2% 23.5% 20.2% 15.
Slide 9: Table of Contents
9 Table of Contents Transaction Overview SourceHOV Overview Financial Summary Key Investment Highlights & Combination Rationale Novitex Overview
Slide 10: Key Investment Highlights & Combination Rationale
Key Investment Highlights & Combination Rationale Combination will Create One of the Largest Full Cycle EIM and TPS providers Leading BPO Asset ▪ Combination will create one of the largest “ must own ” BPO companies ▪ Leading position in its key service offerings Roster of Diverse, Significant Clien
Slide 11: Table of Contents
11 Table of Contents Transaction Overview SourceHOV Overview Financial Summary Key Investment Highlights & Combination Rationale Novitex Overview
Slide 12: SourceHOV Overview
SourceHOV Overview 12 Delivery Locations Partner Locations 125+ delivery centers globally and customers in 55 countries ▪ SourceHOV provides platform - based, mission - critical global transaction processing solutions (TPS) and enterprise information management (EIM) services ▪ SourceHOV manages inf
Slide 13: SourceHOV Evolution
SourceHOV Evolution 13 Transformation to a global multi - industry solution provider started in 2007 with the acquisition of Lason, and adoption of a new strategy: increase automation of people - based services by investing in technology HGM acquisition of Lason Technology and people enabled ser
Slide 14: Select Credentials
Select Credentials 14 12 M adjudications annually 68 M payment transactions daily $600 B Invoices processed annually 42,000 branch offices using remote & mobile check deposit 0.2 - 15 Minute SLA 700,000 claims processed daily 1.5 PB electronic data stored on platform 4 M enrollments annually 8,000 p
Slide 15: Growth Strategy
Growth Strategy SourceHOV is well positioned to scale industry solutions and services for large organizations across the globe by leveraging many referenceable clients and installations Strategic focus on large customers for growth through both white space and geographical expansion • Focused accoun
Slide 16: Table of Contents
16 Table of Contents Transaction Overview SourceHOV Overview Financial Summary Key Investment Highlights & Combination Rationale Novitex Overview
Slide 17: Novitex Overview
Novitex Overview 17 ▪ Novitex is a managed services provider offering leading edge strategic outsourcing solutions and services ▪ Novitex is positioned uniquely in North America’s document outsourcing marketplace, which is segmented into two sectors: Document Logistics and Digital Services ▪ Novitex
Slide 18: Addressing Client's Full Document Processing Needs
18 Addressing Client’s Full Document Processing Needs N ovitex offers an end - to - end, technology - based approach to business - critical document and information management services to facilitate improved client productivity HGM - o Please replace graphic with the attached
Slide 19: Significant Investment in Best-in-Class Infrastructure
Significant Investment in Best - in - Class Infrastructure Novitex invested $ 100 million in technology and offering capabilities to capitalize on fragmented market and to be the leading single source , multi - solution provider 19 IT and Infrastructure Strategic Offerings • Connect : • End - to - e
Slide 20: Client Retention is a Key Strength
20 Client Retention is a Key Strength Novitex boasts a highly diversified blue chip, Fortune 500® client base with low customer concentration Year - over - year Client Retention Statistics (1) TECHNOLOGY & ENERGY LEGAL FINANCIAL SERVICES FEDERAL GOVERNMENT STATES & LOCAL CONSUMER & UNIVERSITY HEALTH
Slide 21: Table of Contents
21 Table of Contents Transaction Overview SourceHOV Overview Financial Summary Key Investment Highlights & Combination Rationale Novitex Overview
Slide 22: Pro Forma Financial Profile
Note 1 Excludes tax - effected average annual cash interest expense of ~$30m - $37m , assuming estimated new debt of $ 1,245m - $ 1,395m ; assumes excess cash used to pay down debt 2 Excludes ~$13m of annualized PF add - backs / combination synergies that do not translate into cash - basis EBITDA in
Slide 23: Pro Forma Cost Synergies
23 Pro Forma Cost Synergies Combination synergies between SourceHOV and Novitex present low hanging cost reduction opportunities for COGS, G&A and facili ty overlap that can be executed within the first 3 - 9 months (low case) Stream Initiative Low Medium High Consolidation of IT Services and Manage
Slide 24: Summary of Revenue Performance
1 Company Overview Summary of Revenue Performance 24 HGM to send Overview ▪ As HGM and Apollo, along with management, have worked closely to transform the respective businesses over the last few years, top line trends have stabilized and are positioned for continued improvement Novitex ▪ The core bu
Slide 25: Core Revenue / EBITDA Trends
$1,307 $1,331 $1,327 $1,330 $1,401 $334 $203 $132 $114 $126 $1,641 $1,534 $1,459 $1,444 $1,528 2014A 2015A LTM 9/30 2016A 2016E 2017E Core Revenues Federal, Legacy Business, and FX Impact (1) $184 $194 $211 $224 $254 $88 $94 $91 $96 $93 $38 $38 $38 $38 $38 $310 $325 $340 $358 $385 2014A 2015A LTM 9/
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