VIQ Solutions Acquires Auscript – A Leading Court Recording and Transcription Services Company

Rhea-AI Summary

VIQ Solutions has completed the acquisition of Auscript Australasia Pty Ltd, enhancing its position in the Asia Pacific transcription market. This acquisition adds approximately USD$12 million in annual revenue and over 2.3 million pages of transcripts and 200,000 hours of recordings per year. The deal, valued at USD$7.65 million, was funded with cash on hand. The merger aims to leverage AI technology for improved service delivery and efficiency in court recording and transcription, expanding VIQ's footprint in Australia and globally.

Positive

• Acquisition adds approximately USD$12 million in annual revenue.
• Increases VIQ's share in the Asia Pacific market, becoming one of the largest providers.
• Combines VIQ's technologies with Auscript's expertise for enhanced service delivery.
• Expected synergies through cross-selling and professional growth opportunities.

Negative

• None.

SYDNEY--(BUSINESS WIRE)-- VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX and Nasdaq: VQS), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, today announced the closing of the asset acquisition of Auscript Australasia Pty Ltd (“Auscript”) a leading supplier of secure court recording and transcription services for courts and law firms throughout Australia.

The combination of Auscript and VIQ is the execution of a strategy and vision that began many years ago. This merger positions VIQ to not only influence the strategic and technological direction of the courts and law offices in Australia, but globally.

Acquisition Details:

• The acquisition is consistent with the Company’s strategy to grow organic revenue while augmenting it with strategic acquisitions in core industries and regions where VIQ already has a strong footprint;
• With the addition of more than 2.3 million pages of specialised transcripts and more than 200,000 hours of evidentiary recordings per year, VIQ is now one of the largest providers of recording and transcription services in the Asia Pacific region;
• The acquisition adds what is expected to be approximately USD$12 million (AUD$16.8 million) in annualised revenue;
• Under the terms of the definitive purchase agreement, the assets of Auscript were acquired for approximately USD$7.65 million (AUD$10.7million) with $7.5 million paid at closing and $150,000 payable through a seven-month earnout plan. VIQ funded the acquisition by utilising cash on hand.

VIQ and Auscript have a shared vision to provide unprecedented levels of access to justice through innovative technologies that automate the creation and management of evidentiary content. Leveraging VIQ's leading technologies and AI-powered services, Auscript’s team of dedicated transcribers, will continue to deliver high quality transcripts with best-in-class service while adding efficiency gains to meet client standards and expand business.

"We are aligned in our approach to provide our clients with unparalleled quality and timely service," said Matt Fowler, Senior VP, Strategic Partnerships and M&A, VIQ Solutions. “Auscript’s strong operational acumen and industry leadership is an asset to VIQ. Together we harness more than 140 years of recording and transcription expertise meeting our client's needs. The acquisition provides immediate cross selling, professional growth opportunities and provides VIQ a coverage model between all major markets in Australia.”

The newly united organisation will provide industry-leading technology to serve customers faster and more effectively. The implementation of VIQ’s NetScribe™ solution, powered by aiAssist™, will transform complex legal evidence to improve turn-around times and drives efficiency. The availability of VIQ’s FirstDraft solution in the region will quickly transform evidentiary digital content into highly specialised legal documentation to provide near real-time access to interviews, testimony, and dictation in a cost-effective manner. Combining the talented transcription staff of Auscript with VIQ’s digital workflow solutions will result in improved service.

“The need for automation has never been stronger. COVID lockdowns in Australia have created a solid backlog for both VIQ and Auscript to use scalable technology, powered by AI, to quickly produce accurate, verbatim, diarized transcripts for courts in the region,” said Susan Sumner, President and Chief Operating Officer, VIQ Solutions. “We welcome the Auscript team, their wealth of knowledge and industry experience to VIQ.”

For more information about VIQ, please visit viqsolutions.com.

About VIQ Solutions Inc.

VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.

Forward-looking Statements

Certain statements included in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this news release include, but are not limited to, the potential benefits of the Auscript acquisition and VIQ’s vision and acquisition and growth strategy.

Forward-looking statements or information is based on several factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the Company’s recent initiatives, and that sales and prospects may provide incremental value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Company’s base shelf prospectus dated June 10, 2021 and in the Company’s other materials filed with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission from time to time, available at www.sedar.com and www.sec.gov, respectively. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211213005328/en/

Media:

Laura Haggard

Chief Marketing Officer

VIQ Solutions

Email: marketing@viqsolutions.com

Investor Relations:

Laura Kiernan

High Touch Investor Relations

Ph. 1-914-598-7733

Email: viq@htir.net

Source: VIQ Solutions Inc.

FAQ

What are the details of VIQ Solutions' acquisition of Auscript?

VIQ Solutions acquired Auscript for approximately USD$7.65 million, adding around USD$12 million in annual revenue.

How does the acquisition of Auscript impact VIQ Solutions' market position?

The acquisition positions VIQ as one of the largest providers of transcription services in the Asia Pacific region.

What technology will VIQ Solutions implement after acquiring Auscript?

VIQ plans to utilize its NetScribe™ and FirstDraft solutions to enhance service efficiency and turnaround times.

When was the acquisition of Auscript completed?

The acquisition was announced on December 13, 2021, and has been completed.

What potential benefits does VIQ Solutions foresee from the Auscript acquisition?

VIQ anticipates improved service delivery, operational efficiencies, and significant revenue growth from the acquisition.