WINNIPEG, Manitoba, July 30, 2019 (GLOBE NEWSWIRE) — People Corporation (the “Company”) (TSX Venture: PEO) today announced the completion of the acquisition of ACL Student Benefits Ltd. (the “Transaction”). ACL Student Benefits Ltd. (“ACL”) was established in 1998 and is one of the largest privately-owned post-secondary student benefits consulting firms in Canada. Combined with the Company’s existing operations in the sector, the addition of ACL immediately establishes People Corporation as a market leader in this large and highly attractive market.
ACL Highlights:
- ACL is headquartered in Toronto and provides consulting services related to health and dental benefits to student associations at Canadian post-secondary education institutions, and to international students attending Canadian universities and colleges, primarily in Ontario, Alberta and New Brunswick;
- The company operates under the trade names “We Speak Student” and Morcare Insurance, the latter of which is focused on its international student benefits program;
- ACL currently serves clients covering over 200,000 students, and has meaningful market share in Ontario, which represents Canada’s largest post-secondary student population; and
- The company’s primary principal, Kelly Morel, will continue to run the operations as part of the People Corporation group of companies, and ACL’s highly talented and dedicated team of consultants and staff will continue to provide industry-leading service to its clients.
“The addition of ACL to the People Corporation family significantly enhances our market position in the post-secondary student benefits sector, which has very strong underlying fundamentals,” said Laurie Goldberg, Executive Chairman and Chief Executive Officer of People Corporation. “In adding the scale and capabilities of ACL to our existing student benefits business, we have solidified our position as a preeminent student benefits solution provider in Canada, broadened our reach into the international student segment, gained meaningful exposure to the Ontario student market and positioned ourselves for accelerated growth in the sector. We are very pleased to partner with an organization that has an excellent reputation and legacy like ACL and look forward to Kelly Morel and the entire ACL team joining the People Corporation family.”
Kelly Morel commented, “We are very excited to join the People Corporation group of companies. My brother Cory and I always took pride in ACL being a family-owned and operated business, built on a foundation of hard work, strong ethics, and a focus on the students. As we continue to have ambitious goals for ACL, and the We Speak Student and Morcare solutions, we felt our best opportunity to achieve those goals would be through becoming part of a larger platform. Once I knew my vision and goals aligned with People Corporation, it did not take long for Cory and I to make the decision to join forces with the People Corporation team and become part of their family. Serving students has always been, and will continue to be, our number one priority, and we are very excited to work together with the People Corporation team and share industry leading best practices as we look to enhance our combined market position for domestic and international student health and dental insurance.”
Cory Morel added, “ACL has a history of being innovative in the design and delivery of health and dental benefits for post-secondary students across Canada. Joining with People Corporation will enable us to extend our industry-leading benefits programs across a larger platform, benefit from additional opportunities resulting from our joint scale, and continue to enhance the breadth and depth of solutions we offer.”
People Corporation has agreed to purchase the shares of ACL for $36.0 million, subject to post-closing adjustments. Of the total purchase price, $31.2 million was paid in cash on closing of the Transaction, and the remaining $4.8 million will be paid by way of deferred payments following the second anniversary of the closing. The cash portion of the purchase price was funded through drawing on the Company’s recently expanded credit facility. The deferred payments are subject to potential adjustment related to the financial performance of the business over that period. In addition, ACL shareholders may be eligible to receive a potential additional payment after three years following closing of the Transaction should the business exceed certain financial performance thresholds.
About People Corporation
People is a leading independent national provider of group benefits, group retirement and human resource services with over 900 employees servicing over 9,000 clients of all sizes from start-up to enterprise. The Company has offices across Canada, each led by a team of experts and backed by the resources of a national company that is traded on the TSX-V. Administering approximately $2 billion in annual premiums, and $10 billion in pension assets, our industry experts provide uniquely valuable insight while customizing our innovative suite of services to the specific needs of our clients. Whatever your sector, whatever your scale, putting our expertise and proven track record to work will make a difference to your people and your bottom line.
For more information, please visit www.peoplecorporation.com.
Forward-Looking Information
This news release contains “forward-looking statements” within the meaning of applicable securities laws, such as statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Use of words such as “may”, “will”, “expect”, “believe”, “intends”, “likely”, or other words of similar effect may indicate a “forward-looking” statement. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Company’s publicly filed documents (available on SEDAR at www.sedar.com). Those risks and uncertainties include the ability to maintain profitability and manage organic or acquisition growth, reliance on information systems and technology, reputation risk, dependence on key clients, reliance on key professionals and general economic conditions. Many of these risks and uncertainties can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statement made by the Company or on its behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements in this news release are qualified by these cautionary statements. These statements are made as of the date of this news release and, except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities.
Investor Relations Inquiries:
Jonathan Ross, CFA
Investor Relations – People Corporation
(416) 283-0178
jon.ross@loderockadvisors.com
Dennis Stewner, CPA, CA
CFO and COO – People Corporation
(204) 940-3988
dennis.stewner@peoplecorporation.com
www.peoplecorporation.com
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