TORONTO, ON--(Marketwired - April 01, 2015) - Symbility Solutions Inc. (TSX VENTURE: SY), a global software company dedicated to developing cloud-based applications for the insurance industry, announced today that it has purchased from The Innovation Group (TIG.L), customer contracts associated with its UK Innovation Symbility business for a purchase price of approximately $6.6 million CDN. This acquisition will result in Symbility taking over the Innovation Symbility team, using the Innovation Group hosting facilities, and establishing a UK office to better manage its operations. Based on historical results of the performance of these contracts, Symbility estimates that the transaction will incrementally add an annual basis approximately $4.1 million CDN in revenue and $2 million CDN in Adjusted EBITDA1.
Concurrently, The Innovation Group has signed a five-year global contract with Symbility to use its cloud-based, mobile-enabled claims estimating platform within their Property service offerings, that includes their independent adjusting and business process services for claims handling, network and contractor management and customer fulfillment.
"This purchase is in line with our stated goal of global expansion," commented James Swayze, CEO, Symbility Solutions. "We believe that taking direct control of these contracts in the UK will allow us to provide enhanced customer service and will prove invaluable to our growth moving forward. We are also pleased to maintain our long-term relationship with The Innovation Group as they expand their use of Symbility's technology and demonstrate it as one of their differentiators in their global property insurance offerings."
"Today's agreement represents an intelligent, long-term direction for The Innovation Group to derive the best possible value from Symbility's software suite," commented Andy Roberts, Chief Executive Officer of Innovation Group. "When Symbility first approached us to change our existing relationship, we were very keen realign the partnership towards our strategy as a service provider. This deal allows us to do just that whilst at the same time be fully reimbursed for the future value of the client contracts that we have secured: a true win-win approach for us, Symbility and our mutual clients."
About The Innovation Group
Innovation Group (TIG.L) is a global provider of insurance software solutions and business process services. With revenues of £209.8m and adjusted PBT of £27.5m in 2014, it employs over 3,000 people across the UK, Europe, North America, Asia Pacific and South Africa and works with 15 of the top 20 global insurance markets, 75% of the top 20 global P&C insurance companies and 3 of the world's top 5 fleet and lease management companies. www.innovation-group.com
About Symbility Solutions Inc.
Symbility Solutions®(TSX VENTURE: SY) is a global provider of cloud-based and smartphone/tablet-enabled claims technology for the property and health insurance industries. Designed to be flexible and easy-to-use, Symbility Solutions' two product suites, Symbility Property™ and Symbility Health™, empower insurers to collaborate across the entire claims processing workflow and reduce costs while delivering a market-leading claims experience. For more information, please visit www.symbilitysolutions.com or follow Symbility on Twitter at @symbility and on LinkedIn at symbility-solutions.
1Adjusted EBITDA is a non-IFRS measure and is calculated as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies. Adjusted EBITDA should not be considered in isolation or as a substitute for net earnings (loss) prepared in accordance with IFRS as issued by IASB. All other financial measures referenced herein have been prepared in accordance with International Financial Reporting Standards unless stated otherwise.
Forward Looking Statements
This news release contains forward-looking information. Forward looking statements in this release include those related to the impact of the acquisition on Symbility Solutions' financial results. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Symbility Solutions to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Symbility Solutions Inc. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which are made as at the date of this press release and Symbility Solutions does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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