OTTAWA, Aug. 14, 2015 /CNW/ - In-Touch Survey Systems ltd. ("In-Touch" TSX-Venture: INX) announces that it has a signed Letter of Intent to purchase a North American Mystery Shopping Company (the 'Acquisition'). For reasons of competition and privacy In-Touch will not disclose the name of the Acquisition until the transaction is closed. The targeted closing date is October 1, 2015. The Acquisition has approximately $4,000,000 in annual revenues with positive net income and a strong balance sheet.
Over the next two months In-Touch will complete its due diligence and final drafting of a definitive Purchase and Sale Agreement. To close the transaction, approvals from the TSX-Venture Exchange, the In-Touch Board of Directors and the owners of the Acquisition are required. The terms of the transaction will not be announced until closing. However, In-Touch expects to finance most of the transaction from its cash resources.
"Pending final due diligence and approvals, we expect the Acquisition to be immediately accretive given its current strong financial position and the fact that 100% of the management team and employees are expected to transfer to In-Touch. We are encouraged and excited to have the opportunity to acquire such a quality company and look forward to the future", said Cameron Watt, President and CEO.
"We are confident that this acquisition will allow us to remain well-resourced and focused against our overall business growth targets including product development and sales efforts around our monthly recurring revenues from the sale of software applications license and user fees", said Watt.
Certain statements included in this news release contain forward looking statements, including the current acquisition and any future acquisitions, anticipated increased annual revenue of the Company, 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.
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 In-Touch Survey Systems Ltd.
For further information: George Pretli, [email protected], Corporate Secretary, 613-270-7916