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Intouch Insight reaches deal to acquire Ohio-based research, marketing firms for US$3.1M

September 18, 2023

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Intouch Insight has agreed to pay US$3.125 million to acquire an Ohio-based market research firm and its sister company that offers rebranding and marketing services to retail customers. The Ottawa software firm said Monday it will pay US$1.5 million in cash at closing for Alta360 Research and Ardent Retail Services and issue promissory notes worth US$500,000 and US$1.125 million that will be payable over the next four years if the acquired companies achieve certain revenue and gross profit targets. The transaction, which is subject to approval by the TSX Venture Exchange, is expected to close Oct. 1. Under the deal, Intouch will acquire all outstanding shares of Brand Equity Builders, the parent company of Alta360 Research and Ardent Retail Services. Founded in 1974, Alta360 specializes in platforms and products that help major retailers, restaurant chains, gas stations, supermarkets and other Fortune 200 clients gather feedback from consumers and intelligence on competitors’ pricing and services. The Maumee, Ohio company generated revenues of US$5 million in 2022. According to LinkedIn, the organization has more than 50 employees. Its sister company, Ardent Retail Services, is a new venture that provides signage, maintenance services, inventory management and other offerings. According to the company’s website, it serves some of the largest big-box chains in the United States. Intouch CEO Cameron Watt said the acquisition will help the Ottawa firm, which specializes in customer survey and data collection software, expand its services and customer base south of the border. “Of all the acquisitions we have done, this one may have me the most excited,” Watt said in a statement on Monday. “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 labour this acquisition is expected to be a springboard for Intouch in 2024,” he added. Stan Hart, the CEO of Brand Equity Builders, Alta360 and Ardent Retail Services, will join Intouch’s executive team “with a focus on assisting with revenue growth,” the Ottawa firm said in a news release Monday. “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,” Hart said. “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.” The agreement comes a month after Intouch reported a 22 per cent drop in second-quarter revenues compared with a year earlier as the company continued to feel the loss of a one-time contract that was not renewed. Intouch had revenue of $5.7 million for the three-month period ending June 30, down from $7.3 million in the same quarter in 2022. The firm’s shares were up three cents to 40 cents in late-morning trading Monday on the TSX Venture Exchange. So far this year, Intouch’s stock has shed more than 30 per cent of its value.