Intouch Insight Ltd. To Acquire A Customer Experience Measurement Company
By: Sarah Beckett May 13, 2021
OTTAWA, Canada May 13, 2021 – Intouch Insight Ltd. (“Intouch” or the “Company”) (TSXV: INX) (OTCQX: INXSF) today announces that on May 12th 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 September 1, 2021. The Vendor has approximately USD $5.0M in revenues with a gross margin of 41%.
Intouch had announced a previous non-binding LOI with the same Vendor in February of 2020 which was subsequently lapsed due to the global pandemic. The terms of the LOI have been adjusted to reflect changes in circumstances over the last year. The purchase price is USD $1.6M in cash and 1.5M common shares of Intouch upon closing and additional contingency payments expected to be USD $1.1M 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 from the Vendor, nor will it pay any finder’s fees.
“Getting this Acquisition back on track is a positive signal that business is returning to its pre-pandemic state. The Vendor’s business has weathered the storm and, like Intouch, is now very close to a full recovery. This Acquisition brings with it additional geographic dispersion and a client base consisting of household name brands to whom we can target sales of our robust suite of SaaS products. In addition, there are significant revenues synergistic with our own and a wealth of experience and knowledge through its competent management team and employee base. In fact, as part of the Acquisition the Vendor’s founder will stay on as a full-time member of the Intouch team to ensure that we best leverage the Acquisition for additional growth,” said Cameron Watt, President and CEO of Intouch.
“The large investment we have made in technological superiority is beginning to be recognized and, as this is a barrier for many other organizations in the industry, Intouch has become an attractive acquirer,” said Watt.
About Intouch Insight
Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Through its flagship SaaS product, LiaCX®, Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions. For more information, visit intouchinsight.com.
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 More Information, please contact:
Chief Financial Officer