Alithya Group inc

Fiscal 2023 Developments

On April 1, 2022, the Company acquired all the issued and outstanding shares of Canadian-based Trafic 3W Inc., an information technology (“IT”) consulting firm specialized in the digital transformation in Québec, for total consideration of approximately $2 million, paid in cash and through the issuance of 83,449 subordinate voting shares. Immediately following the acquisition, Trafic 3W Inc. was amalgamated with Alithya Consulting Inc.

On July 1, 2022, the Company acquired all the issued and outstanding equity interests of US-based Datum Consulting Group, LLC and its international affiliates, a leader in IP digital transformation services for data-rich entities specialized in application modernization and data migration and with offshoring capabilities in India and Eastern Europe, for a total consideration of approximately up to US$45.5 million, consisting of (i) US$13.6 million paid in cash at closing; (ii) US$4.3 million paid by the issuance of 1,867,262 subordinate voting shares at closing; (iii) US$10.3 million of deferred cash consideration, payable over three years on July 1, 2023, 2024 and 2025; (iv) deferred share consideration of 1,867,261 subordinate voting shares with a value of US$4.3 million; and (v) a potential earnout consideration of up to US$13 million, subject to certain post-closing conditions, payable over three years in 2023, 2024 and 2025, in cash (75%) and shares (25%). The consideration payable in cash at closing was financed by a $2.5 million draw on the Company’s IQ Loan, and the remainder through available funds under the Company’s Credit Facility.

ALITHYA -Annual Information Form 4

On September 14, 2022, the Company announced the renewal of its NCIB to purchase for cancellation up to 2,491,128 subordinate voting shares, representing 5% of the Company’s public float as of the close of markets on September 8, 2022. Purchases for cancellation under the then current NCIB commenced on September 20, 2022 and ended on September 19, 2023. Purchases could be made on the open market through the facilities of the TSX and Nasdaq, or through alternative trading systems, if eligible, or outside the facilities of the TSX pursuant to exemption orders issued by securities regulatory authorities.

On January 30, 2023, Bernard Dockrill joined the Company as Chief Operating Officer and Claude Rousseau, the former Chief Operating Officer, was appointed Special Advisor to the President and Chief Executive Officer, a position he held until his retirement on March 31, 2023.

On September 29, 2022 and February 13, 2023, the Company’s amended and restated credit agreement was amended to, among others, include an accordion provision pursuant to which the maximum amount of the Credit Facility was increased from $125 million to $140 million during a period ending no later than January 31, 2023 (the “Bulge Period”), and to change applicable margins during the Bulge Period.

During the year ended March 31, 2023, the Company purchased for cancellation 378,425 subordinate voting shares for approximately $1 million at a weighted average price of $2.77 under the then current NCIB. As at March 31, 2023, the Company could still purchase up to 2,396,589 subordinate voting shares for cancellation under the then current NCIB.