OTTAWA, ON, June 6, 2023 /CNW/ – Intouch Insight Ltd. (“Intouch” or the “Company”) (TSXV: INX) (OTCQX: INXSF) announces that on June 2nd it signed a non-binding Letter of Intent (“LOI”) to purchase all outstanding shares 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, 2023. The Vendor has approximately USD $5M in annual revenues and EBITDA of approximately 15%.
It is expected as set out in the LOI that the purchase price is USD $1.5M in cash upon closing, a USD $500,000 promissory note repayable over three years with interest, and additional contingency payments expected to be approximately USD $400,000 per year paid in cash based on annual performance for four years post-closing. Intouch intends to pay for the Acquisition from a combination of bank debt financing and ongoing cash flow generated from the Vendor’s ongoing business. Intouch will not assume any long-term debt from the Vendor, nor will it pay any finder’s fees.
“The proposed Acquisition is synergistic with our current business. We expect a smooth and efficient integration of the new clients who represent some exciting new brands for Intouch to work with. This transaction will increase our portfolio of clients to whom we can sell our entire suite of products, including our SaaS offerings. The Vendor’s business appears to be very well run and a respected organization in the industry. As such, we are looking forward to adding its management team and employee base,” said Cameron Watt, President and CEO of Intouch.
“The large investment Intouch has made in technological superiority continues to put us into a leadership position which is difficult to match and makes Intouch an attractive acquirer for owners looking for the right fit for their clients and their employees,” said Watt.
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 acquisition, future financing, 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.