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Intouch to pick up assets
Posted on Friday, 14 February 2020 07:56
Intouch Insight has submitted a letter of intent to acquire the assets of an arm’s length customer experience measurement company in North America for USD 2.00 million in cash.
For reasons of competition and privacy, the buyer will not disclose the vendor’s name until a definitive agreement has been confirmed.
That said, the company has generated USD 5.00 million in revenues, with a gross margin of 39.0 per cent.
Completion is slated for 1st May 2020, subject to the green light from the TSX Venture Exchange.
Intouch plans to finance the transaction via a combination of cash on hand, debt financing and ongoing cash flows from the vendor’s existing business.
However, the buyer will not be assuming any long-term debt or paying any finder’s fees.
Cameron Watt, chief executive of Intouch, said the deal will bring additional geographic dispersion to its operations, as well as a client base the company can target with its software-as-a-service products.
He added: “The organisation we are acquiring not only brings with it significant revenues synergistic with our own but also brings a wealth of experience and knowledge in the form of its very capable management team and employee base.”
Following the deal, the vendor’s founder will remain as a member of Intouch’s management team to support the acquisition for further growth.
Headquartered in Ontario, Intouch Insight is an information technology service management company which collects electronic data.
The company provides mystery shopping services, field audit and online service software to customers in the automotive, healthcare and retail industries, among others.
During the nine months ended 30th September 2019, Intouch posted revenue of USD 4.91 billion, up 25.6 per cent from USD 3.91 billion in the corresponding period of 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 10,986 deals targeting data processing, hosting and related services providers announced globally in 2019.
Cayman Islands-based Alibaba Group Holding raised HKD 88.00 billion (USD 11.32 billion) in a secondary listing on the Hong Kong Stock Exchange in the most valuable of these.
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