OTTAWA, Feb. 13, 2020 /CNW/ - Intouch Insight
Ltd. ("Intouch" or the "Company") (TSXV: INX) (OTCQB: INXSF) today
announces that on February
11th it has signed a non-binding Letter of Intent
("LOI") to purchase the assets of an arm's length North American
customer experience measurement company (the "Vendor"), subject to
TSX Venture Exchange approval (the "Acquisition"). For reasons of
competition and privacy Intouch will not disclose the name of the
Vendor until the completion of a definitive agreement. The targeted
closing date is May 1, 2020. The
Vendor has approximately USD $5.0M in
revenues with a gross margin of 39%.
The purchase price is USD $2.0M in
cash upon closing and additional contingency payments expected to
be USD $1.5M paid in cash based on
performance for two years post-closing. The transaction should be
immediately accretive and Intouch intends to pay for the
Acquisition from a combination of cash on hand, bank debt
financing, and ongoing cash flows generated from the Vendor's
ongoing business. Intouch will not be assuming any long-term debt,
nor will it pay any finder's fees.
"This is the second such acquisition announced in 2020 as we
continue to aggressively seek growth opportunities within our core
business lines. This Acquisition brings with it additional
geographic dispersion as well as a client base consisting of
household names to whom we can target sales of our robust suite of
SaaS products. The large investments we have made in
technological superiority is beginning to be recognized in the
industry and as this is a barrier for most other organizations
Intouch has become an attractive acquirer," said Cameron Watt, President and CEO of
Intouch.
"The organization we are acquiring not only brings with it
significant revenues synergistic with our own but also brings a
wealth of experience and knowledge in the form of its very capable
management team and employee base. In fact, as part of the
Acquisition we expect that the Vendor's founder will stay on as a
member of the Intouch management team to ensure that we can
leverage the Acquisition for additional growth," said
Watt.
Certain statements included in this news release, including
those relating to the Company's proposed transaction, future
revenues and expansion, contain forward looking statements, which
by their nature are necessarily subject to risks and uncertainties
and other factors that may cause actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such statements reflect the
Company's current views with respect to expectations, estimates,
future events, and are based on information currently available to
the Company and on hypotheses which it considers to be reasonable;
however, management warns the reader that hypotheses relative to
future events which are beyond the control of management could
prove to be false, given that they are subject to certain risks and
uncertainties. The Company does not undertake any obligation to
update or release any revisions to these forward-looking statements
to reflect events or circumstances after the date of this
presentation or to reflect the occurrence of unanticipated
events, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Intouch Insight Ltd.