In-Touch Insight Systems Inc. acquires the Field Research division of NAVEX Global Inc.
April 2, 2013
OTTAWA, April 2, 2013 /CNW/ - In-Touch Insight Systems Inc. ("In-Touch") (TSXV: INX) announces that it has acquired the Field Research ("FR") division of NAVEX Global Inc. ("NAVEX"). FR provides overt and covert on-site evaluations and inspections, primarily in the United States with some audits in Canada, to gauge compliance with legislation, regulations and organizational policies and procedures such as the following:
FR offers a wide variety of options to assist pharmaceutical companies in compliance with the Prescription Drug Marketing Act's (PDMA) guidance for a proactive sample accountability program. The Prescription Drug Marketing Act (PDMA) is a United States federal law that was enacted to ensure that drug products purchased by consumers are safe and effective, and to avoid the unacceptable risk to U.S. consumers from counterfeit, adulterated, misbranded, sub-potent or expired drugs.
FR is approved by the three major credit bureaus (Experian®, Equifax®, TransUnion®) to provide standard and custom physical site inspections that validate business legitimacy and prospective customer intent prior to the sale of personal data. The Fair Credit Reporting Act (FCRA) is a United States federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information.
"We have researched and followed the legislated/regulated compliance market for several years and have been actively searching for effective ways to enter this market. The acquisition of the FR division from NAVEX provides us with an excellent market entry point, as it has Fortune 1000 customers in place and complete operational capability. Looking forward, the combination of the FR along with our mobile web data capture technology will provide the combined entity with a significant differentiation over the competition", said Michael Gaffney, Chief Executive Officer of the Company.
The purchase of FR from NAVEX of certain assets and the assumption of certain liabilities, was for a cash purchase price of one million dollars ($1M) and is anticipated to add more than two million dollars ($2M) in annual revenues to In-Touch. The Company expects increased revenues from this division in the future now that FR has been freed from the constraints of being a small non-strategic division of NAVEX.
The Field Research business is highly valued by clients for the care, diligence and professionalism the team provides on various audits. While not core to the NAVEX Global ethics and compliance ecosystem or material to overall company revenues, it is a business that can and will flourish and grow under the management of In-Touch Insights while NAVEX Global continues to focus on delivering world class training, software and advisory solutions to our more than 8,000 customers worldwide", said Mark Reed, CEO of NAVEX Global.
"In-Touch is actively searching for fairly-priced, profitable, companies with revenue in the range of two to five million dollars per year that fit with our mobile web data capture technology and existing lines of business. The market for our targeted acquisition appears to be picking up and we would like to make one or two more acquisitions to the Company in fiscal 2013", said Gaffney.
Certain statements included in this news release contain forward looking statements, including the current acquisition of FR 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.
The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.
SOURCE: In-Touch Survey Systems Ltd.
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