OTTAWA, Aug. 28 /PRNewswire-FirstCall/ -- In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) today announced that it will acquire NCI Mobility LLP ("NCI") of Chicago, IL. Both NCI and In-Touch provide mobile data capture and brand research programs to Fortune 5000 business-to-consumer companies in the United States.
The acquisition aligns with In-Touch's strategy of leveraging its investment in the development of a comprehensive data collection, data management and reporting system for enterprise customers. In-Touch will add NCI's customer base, which includes companies such as Bacardi, General Motors, crocs, MillerCoors and British Petroleum to their own, and will realize immediate economies of scale from consolidating operations.
NCI assets will be acquired for 1,222,000 common shares of In-Touch and the payment of NCI's accrued accounts payable liabilities. These accounts payable amounts may be negotiated downward with suppliers which would lower the purchase price accordingly. The cash amount, to a maximum of $750,000, will be paid over three years contingent upon meeting monthly revenue targets to ensure profitability before payment. In-Touch will retain NCI's marketing and sales staff in NCI's Chicago office, adding an office to In-Touch's US organization. In-Touch will consolidate research and development and operations at its Ottawa facility to improve profit margins and optimize current operational resources.
We are excited at the prospect of providing a broader and deeper array of digital marketing solutions to our valued customers and partners. We view this alignment as a means to enhance our current offering, providing our clients with the most technologically advanced products and services to meet and exceed their event, engagement and CRM goals", said David Perlmutter, Senior Vice President, NCI.
"Over the past three years In-Touch has been building its data collection solutions for the marketing, sales and operations departments of business-to-consumer companies. The NCI acquisition validates our investment in a scalable technology platform which allows us to easily add the NCI customers and revenue and eliminate over 60% of their operational costs. NCI customers will have immediate access to the broader range of products and services offered by In-Touch.", said Michael Gaffney, Chief Executive Officer.
"We expect to close this transaction by mid-September, pending board and regulatory approvals. The NCI purchase should increase annual In-Touch revenues by at least $1,250,000 based on its trailing performance, however, our goal is to grow these revenues by an additional 30%. In-Touch also plans to continue to use its technology advantage to grow further through consolidation", said Gaffney.
Certain statements included in this news release 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 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 TSX Venture Exchange has not reviewed the foregoing and has neither
approved or disapproved the contents of this press release.
