OTTAWA, ON, May 13, 2021 /CNW/ - Intouch Insight Ltd.
("Intouch" or the "Company") (TSXV: INX) (OTC: 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.
SOURCE Intouch Insight Ltd.