Intellinetics, Inc. acquires Yellow Folder, LLC; Complements equity and debt financing



Intellinetics, Inc.

Transformational Acquisition Strengthens K-12 and Enterprise Content Management Market Position and Significantly Increases SAAS Revenue

COLUMBUS, Ohio, April 05, 2022 (GLOBE NEWSWIRE) — Intellinetics, Inc.(OTCQB: INLX) a cloud-based provider of solutions and services that enable and accelerate digital transformation, including document processing, enterprise content management and business process outsourcing, announced that it has acquired nearly all assets of Yellow Folder, LLC, a document solutions company specializing in the K-12 education market. Based in Dallas, Texas, Yellow Folder generated $3.1 million in revenue (unaudited), including $2.8 million in SAAS revenue in its most recent fiscal year, ending December 31, 2021.

The purchase of the Yellow Folder, LLC business extends Intellinetics’ content management products and services to the highly regulated, risk- and compliance-focused K-12 market. The IntelliCloud the solution suite can now be extended to include YellowFolder document management system for the K-12 market that integrates with leading scanning hardware and business applications to provide a complete solution that solves the specific problems faced by school districts. The combined reputation of Intellinetics and Yellow Folder for industry knowledge and responsive in-house technical support should measurably improve customer satisfaction and loyalty.

Tessa Tyler, director of education, and Ryan Bell, chief technology officer, of Yellow Folder, along with key support staff, will join Intellinetics. Ms. Tyler said, “We’ve been looking for a way to take it to the next level for some time, and this opportunity to add our solutions and expertise to Intellinetics’ portfolio is the right one to make this step change a reality. I look forward to the road ahead of us, which will allow us to offer our customers the best of both worlds. »

“We are thrilled to be working with Tessa and Ryan and their team,” said James F. DeSocio, President and CEO of Intellinetics. “Their customer focus matches our culture and, like with us, their customers tend to stay with them for a long time. Their successes in the K-12 education market are impressive and together we will have a stronger footprint in these areas and enable cross-selling of other Intellinetics services and solutions to Yellow Folder’s customer base. , including document processing and business process outsourcing. Additionally, each of us has complementary solutions and utilities that we can share with the other’s customers to generate wins with those customers. We remain confident in our focus on the K-12 industry as a key market, and this purchase underscores that confidence. We believe the acquisition of Yellow Folder will be accretive and therefore add value to our investors just as it adds value to our collective clients. The addition of Yellow Folder should significantly increase the proportion of Intellinetics recurring revenue to our total revenue base.

To fund the acquisition of Yellow Folder, Intellinetics completed a private placement of approximately $8.7 million in debt and equity, consisting of 1,242,588 common shares at a price of $4.62 per share and 2 $964,500 in principal of 12% subordinated promissory notes. After payment of the purchase price for the Yellow Folder transaction, the remaining proceeds will be used for general working capital.

Taglich Brothers, Inc. served as exclusive advisor for the acquisition of Yellow Folder and exclusive placement agent for the private placement.

The securities sold under the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States without registration with the Securities and Exchange Commission (SEC) or a competent authority. exemption from these registration requirements. Intellinetics has agreed to file a registration statement with the SEC covering the resale of the common stock issued under the private placement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and there will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. prior to registration or qualification under the securities laws of such jurisdiction.

On IntellineticsInc.
Intellinetics, Inc., located in Columbus, Ohio, is a cloud-based content services software provider. Sound IntelliCloud The suite of solutions plays a critical role for organizations in highly regulated, risk-intensive and compliance-intensive markets across healthcare, K-12, public safety, public sector, risk management, financial services and beyond. IntelliCloud solutions make content secure, compliant, and ready to process to drive innovation, efficiency, and growth. For more information, please visit

On yellow folderLLC.
Yellow Folder is a cloud-based records management system (RMS) for K-12 schools in the United States. Yellow Folder digitally maintains and manages student records, special education records, employee records, and administrative records for the entire school district/system. Transcripts, district reports, medical records, staff data, and all other school records are uploaded by district staff and stored on secure cloud-based Yellow Folder servers for easy access by staff district at any time with an internet browser and the appropriate security credentials.

Caution regarding IntellineticsInc.
Statements in this press release that are not purely historical, including statements regarding future momentum and growth paths and strategies; future proportionate recurring revenue from Intellinetics; synergies, improved customer satisfaction and loyalty and cross-selling opportunities with Yellow Folder; the expected accretive nature and value addition resulting from the acquisition of Yellow Folder; the attractiveness of the Company’s platform for future business and new revenue associated with any subsidiary, product, industry, market, initiative or service; executing Intellinetics’ business plan, strategy, direction and direction; and other intentions, beliefs, expectations, representations, projections, plans or strategies regarding future growth and other future events are forward-looking statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, the risks associated with acquisitions in general and Yellow Folder in particular; Yellow Folder’s ability to perform as intended by management; the impact of the Yellow Folder acquisition on Intellinetics’ customers and other financial results; the effect of changing economic conditions, product market trends, variations in Intellinetics’ cash flows or adequacy of capital resources, market acceptance risks, success of partners in Intellinetics distribution, technical development risks and other risks, uncertainties and other factors discussed from time to time in its reports filed with or provided to the Securities and Exchange Commission, including Intellinetics’ most recent annual report on Form 10-K as well as in subsequent reports filed on Form 8-K. Intellinetics cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Intellinetics disclaims any obligation and does not undertake to update or revise any forward-looking statements contained in this press release. Detailed and historical information is made publicly available by Intellinetics on its website at or at

Joe Spain, CFO
Intellinetics, Inc.
[email protected]

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