Intouch Insight (TSX-V:INX) says its latest acquisitions will immediately improve the Ottawa-based customer experience firm’s bottom line, as well as adding new channels for growth.
Intouch announced this week it has entered into a deal to acquire both Calgary’s PerformaLogics Inc., an experience measurement firm, and its sister company MobilForce, a field reporting software developer. The transaction remains subject to conditions from the TSX Venture Exchange.
The all-cash deal will see Intouch pay $750,600 upfront and an additional $1 million over the next three years, assuming the acquirees meet certain revenue targets.
Together, PerformaLogics and MobilForce currently collect annual recurring revenues of roughly $2 million with a gross margin of 51 per cent. Intouch, which last quarter pulled in revenues of $4.9 million and reported a net profit of $136,566, said in statement it expects the acquisition to be immediately accretive.
CEO Cameron Watt stated that the overlap of the two acquired companies’ existing client bases with Intouch’s target markets will mean new expansion opportunities for Intouch’s solution, which already helps brands such as Sobeys and A&W track customer satisfaction.
The markets appear to be reacting well to the acquisitions. Shares of Intouch are up nearly 20 per cent since the deal was announced Tuesday morning, trading around 52 cents on Wednesday afternoon.
Intouch expects the acquisition to close Feb. 1.