December 2, 2013 – TORONTO, ON: - Smart Employee Benefits Inc. (“SEB”) (TSXV:SEB), is pleased to announce it has acquired 50% of Inforica Inc. through a share subscription made by SEB’s wholly owned subsidiary, Logitek Technology Ltd.
Stated John McKimm, CEO of SEB, “We are pleased to close the Inforica transaction. We have worked closely with Inforica since originally announcing the transaction in March, 2013. We made our original investment in the form of a working capital loan shortly after the March, 2013 announcement and have been working closely with with Inforica since. Closing this investment is simply converting a portion of the loan to equity in return for a 50% equity stake in the business. Since making our announcement in March, 2013, Inforica has added over $2.5 million of new annuity business and created a backlog of over $4.0 million, deliverable over the next 12 months. SEB’s intention is to acquire the remaining 50% equity interest within the next 36 months. Our relationship with Inforica has already increased the opportunities available to Logitek Technology Ltd and to the Somos Group, and other SEB companies focused on providing services to both corporate and Government clients. The synergies provided by the joining together of these organizations is significant in developing new business opportunities and helping SEB be a stronger technology player in the health care industry.”
About Inforica: Inforica Inc. is a Mississauga, Ontario based company that has been in operation for over a decade. Sales have historically fluctuated between $2.5 million and $5.0 million annually. The key features of Inforica which have value for SEB are as follows:
- Client Relationships: strong client relationships with Tier 1 businesses which provide significant opportunities for other business initiatives.
- Software Vendor Partnerships that include valuable reseller, ISV, Systems Integrator partnerships that have been put in place and developed for the past decade which can be leveraged by SEB Group companies. Key partnerships include:
- Microsoft: Inforica has a strong partnership with Microsoft that has grown over the past few years and covers the following Microsoft Gold & Silver Competencies – Business Intelligence, Customer Relationship Management, Application Development, Office 365 and Data Platform. Inforica also has an ISV Royalty agreement in place with Microsoft.
- Interactive Intelligence: a Global provider of contact center automation, unified communications, and business process automation software and services for mid-size to large organizations.
- TimeXtender: a Global provider of metadata driven and agile Data Warehousing and ETL software dedicated to the Microsoft SQL platform.
- PNMSoft: provides Business Process Management Software solutions to businesses and organizations worldwide.
- PeopleSoft Expertise: PeopleSoft is one of the Human Resource ERP solutions most used by large companies, particularly in the Hospital sector. This expertise is a significant competitive advantage for SEB’s health care practice, particularly in managing the transition of HR data from PeopleSoft to SEB’s health benefits processing technology environment. Typically, HR data migration costs can be a deterrent for large companies and organizations when they are making decisions with respect to moving their employee benefit environments. The Inforica expertise has allowed SEB the ability to create the interface with PeopleSoft and manage it seamlessly in a very cost effective and timely fashion without cost to the client.
- Energy Management Software and Business Process Solutions that help companies measure, analyze, manage and save on their energy consumption and costs. This comes with key client relationships, and is a strong strategic fit with the SEB company, Logitek Technology Ltd.’s supply chain platform.
- India development office (approximately 45 employees) with significant ability to scale and provide various services including software development and support, business process outsourcing, call center & telemarketing services. This office is a significant asset in helping manage SEB’s initiatives in the UAE.
- UAE (United Arab Emirates) Presence: Inforica has two offices in the Middle East, one in Dubai and the other in Ras Al Khaimah. Additionally, Inforica management have extensive business relationships in this region. There are many opportunities for implementing the SEB health benefits technology environment in the UAE. Employee Health Benefits is a mandatory pre requisite for all employees in the region. The largest implementation of the SEB adjudication technology is Oman Insurance in Dubai. Currently, SEB opportunities in the UAE include hospital applications both for their employees and for managing the relationships with local insurers, a large travel insurance administration and claims processing opportunity, a project to create a TPA environment with the SEB technology platform as the backbone for managing health insurance programs for students in various UAE countries who study abroad in Canada and the US. Discussions have been initiated on all fronts. SEB’s experience in the area, in conjunction with the Inforica experience and relationships, positions SEB well to develop a material presence in this region.
- References for RFP submissions: Inforica Group have many key references which allows other SEB companies to qualify for more bidding categories with corporate, federal and provincial government opportunities. Inforica has more than a decade of delivering successful projects which are excellent references in responding to RFP business opportunities.
About SEB: SEB is a technology company providing software, solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients. Health Claims Processing alone is a $56.0 billion industry, of which over $33.0 billion is employee group benefit plans and over $23.0 billion of other healthcare benefit claims (e. g. workers’ compensation claims, travel benefits, various federal and provincial government programs, dental associations, drug associations, etc.). In the employee group benefits industry, SEB operates as a Third Party Administrator (“TPA”) and Insurance Brokerage utilizing its software platform to provide “totally hosted PCI compliant supply chain solutions” for managing the complete group benefits business processes between insurers, clients, brokers, consultants, technology service providers and healthcare service providers. In healthcare claims processing, SEB also operates as a systems integrator utilizing its technology platform together with other technologies to provide customized, fully integrated solutions for specialized environments (e.g. travel claims, student benefits, hospitals, unique government applications etc.). The technology and expertise deployed in this area also allows SEB to provide other related supply chain, systems integration and human resource solutions and services to the same clients.
For further information about SEB, please visit www.seb-inc.com.
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