INTOUCH INSIGHT LTD. ANNOUNCES A DEFINITIVE AGREEMENT TO ACQUIRE ALTA360 OF TOLEDO, OHIO
OTTAWA, ON, Sept. 18, 2023 /CNW/ - Intouch Insight Ltd., (Intouch or the Company) (TSXV: INX) (OTCQX: INXSF) today announces that on September 15, 2023 it entered into a definitive agreement (the Acquisition) to acquire all outstanding shares of Brand Equity Builders Inc. (BEB) the parent company of both Alta360 Research Inc. (Alta) and its sister company Ardent Retail Services Inc. (Ardent), subject to TSX Venture Exchange approval. Alta is a US customer experience measurement company who has provided services across the US since 1999. Ardent is a new venture offering in-store services such as merchandising and re-branding. The letter of intent was signed on June 2, 2023, and the targeted closing date is October 1, 2023.
"Of all the acquisitions we have done this one may have me the most excited. The value in an acquisition is not only the customers and revenues but also the reputation and talent that comes with the acquired company. The Alta team has a great deal of tenure and knowledge at all levels and the current owner, Stan Hart, is also the current President of the industry association, the MSPA. Having served on the MSPA Board of Directors with Stan in the past I can attest to his abilities and character and I am very pleased to be able to team up with him and his company" said Cameron Watt, President & Chief Executive Officer of Intouch.
Alta had calendar 2022 annual revenues of US$5.0M, and EBITDA of 8%. Intouch will not assume any long-term debt from the vendor and the transaction is arm's length from Intouch. The purchase price for the Acquisition is a combination of cash and a promissory note. The purchase price is US$3.125M in cash of which, US$1.5M is payable at closing along with a promissory note for US$.5M and US$1.125M is payable over the next four years based on achievement of Alta revenue targets and Ardent gross profits. Intouch plans to finance the Acquisition with a five-year term bank loan for CA$2.0M, and from its existing cash resources. No finder's fees are payable by Intouch. Upon closing, Stanley Hart, the CEO of BEB, Alta and Ardent will be joining Intouch with a focus on assisting with revenue growth.
"Selling my business was not a decision that I took lightly but I am very pleased with the outcome and that my customers and my employees will have such a great new home. When you look at the technological advantage that Intouch has in the industry and then get to understand its leading culture and capabilities you cannot help but want to join forces and work towards industry domination" said Stan Hart, Chief Executive Officer of BEB, Alta and Ardent.
"This Acquisition is in line with our overall growth strategy and will not only add velocity to the growth of our services revenues but will also provide us with an avenue for accelerated growth through Ardent. It also provides a customer base to whom we will be able to sell additional products and services including our SaaS offerings. Between the incoming revenues, the potential new opportunities, and the additional skilled labor this acquisition is expected to be a springboard for Intouch in 2024," 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. 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, geolocation data capture and event marketing automation solutions. For more information, visit intouchinsight.com.
Certain statements included in this news release contain forward looking statements that are made of the date hereof, 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 future events, including the proposed acquisition, future revenues and references to the Company's expansion and growth of the business and operations, 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. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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.
Cathy Smith, Chief Financial Officer, [email protected], 613-270-7916
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