OTTAWA, Canada January 21, 2020 – Intouch Insight Ltd. (“Intouch” TSXV: INX, OTCQB: INXSF) today announces that it has entered into a definitive agreement to acquire PerformaLogics Inc., a North American experience measurement company, and its sister company MobilForce, a field reporting software company (the “Acquisition Companies”), subject to TSX Venture Exchange acceptance. The Acquisition Companies have calendar 2019 annual recurring revenues of $2,048,000, gross margin of 51% in line with historical Intouch margins, and the transaction is arm’s length from Intouch. The purchase price for the Acquisition Companies is up to $1,750,600 in cash of which, $750,600 is payable at closing and then up to $1,000,000 is payable over the next three years based on achievement of revenue targets. Intouch expects to finance the acquisition from its cash resources, no finder’s fees are payable by Intouch, and Intouch will not be assuming any long term debt. The targeted closing date is February 1, 2020.
“We expect the transaction to be immediately accretive given the Acquisition Companies’ current financial position and the fact that the customer base is in industries that Intouch serves today. We have met with all of the employees of the Acquisition Companies and are excited to have them join Intouch where they can better leverage their customer relationships and expertise,” said Cameron Watt, President and CEO.
“The Acquisition Companies have recurring revenue in both services and software sales from well-known brands. These new customers become revenue expansion targets for Intouch’s robust suite of SaaS products,” 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.
For further information, please contact:
Cathy Smith
Chief Financial Officer
csmith@intouchinsight.com
613-270-7916