December 19, 2014 – Toronto, ON
Smart Employee Benefits Inc. (“SEB”) (TSX VENTURE:SEB) is a technology company which uses a SaaS business model to provide “business process software solutions and services” to corporate and government clients with specialty practices focused on “managing group benefit solutions and health claims processing environments”.
SEB is pleased to announce that Logitek Technology Ltd. (“QLogitek”), a wholly owned subsidiary of SEB, has entered into an agreement with DiCentral Corporation (“DiCentral”) to jointly service the Canadian Electronic Data Interchange (“EDI”) market. As part of this transaction, DiCentral has acquired QLogitek’s EDI business, including all existing IP and support infrastructure in Canada, for $2,150,000. On closing, QLogitek received $1,000,000 cash with $750,000 cash payable on or before January 15, 2015 and the remaining $400,000 payable over 24 months in varying amounts in 6 month intervals. QLogitek will operate as a strategic partner-reseller of DiCentral’s EDI solutions. DiCentral is co-locating with QLogitek at QLogitek’s offices in Mississauga, Ontario. QLogitek personnel will continue to support existing clients in the same infrastructure. Over time, select applications will be migrated to DiCentral solutions. SEB will also deploy DiCentral’s EDI technology solutions in SEB’s health benefits administration and health claims processing environments. QLogitek’s “EDI” business was approximately 35% of QLogitek’s total sales.
MANAGEMENT COMMENTS: John McKimm, President, CEO and CIO of SEB, states, “QLogitek has been reviewing its strengths in its EDI division over the past year. We decided we needed a full suite of end-to-end solutions to remain strongly competitive in the industry and to grow this division. The choices were to make a major investment in broadening the suite of supply chain EDI software solutions or find a partner who already has the solutions. Making the investment in developing our own solutions was an expensive, time consuming exercise and would take several years. We opted to find a suitable partner where the technology fit and cultural fit allowed us to offer a full suite of options for our EDI clients, including our health-care division. In this regard, we surveyed the industry and have negotiated a deal with DiCentral out of Houston, Texas. DiCentral has global operations and a full suite of B2B Integration products and solutions. They have made a strategic decision to enter the Canadian market and have recently acquired a substantial presence in Quebec. The transaction with QLogitek provides a strong EDI footprint outside of Quebec.”
Isa Qureshi, EVP Client Services of QLogitek, states, “This is a very exciting time for QLogitek to now be offering the deeper and broader range of supply chain solutions afforded by DiCentral to our clients. This allows us to provide our clients with leading technology in this industry and a much broader range of end-to-end solutions. Healthcare is a major beneficiary of EDI and the additional EDI expertise of DiCentral also allows the SEB Benefits Division greater opportunities to introduce broader B2B/EDI capability to automate SEB’s health claims administration and claims payment environment on a global basis.”
Thuy Mai, CEO of DiCentral, states, “EDI capability is pervasive in every industry sector on the planet including government, energy, retail, healthcare and financial services, to mention a few. EDI capability allows even the smallest organization to be tied to a global automated transaction ecosystem. DiCentral has been developing technology solutions in this space for almost 15 years. With a development team in excess of 200 people worldwide, a sales team of over 40 people and clients in over 27 countries including China and Japan, DiCentral is one of the leading global EDI players in the industry. QLogitek has been one of the more innovative B2B cloud integration solution providers that has solved the needs of retailers and businesses that operate within the retail supply chain ecosystem. We’re thrilled to add QLogitek’s customers, technology and talented team to expand our existing suite of solutions and global service offering in Canada. Additionally, we have recently made significant inroads into healthcare and the healthcare solutions offered by SEB are complementary as we expand DiCentral’s healthcare initiatives.”
ABOUT DiCENTRAL: Founded in 2000, DiCentral is a leading innovator in supply chain management solutions and B2B integration. DiCentral provides B2B outsourcing and managed services in the cloud, using state of the art technology to manage transaction flow, process orchestration, and business rules with a global team to manage our clients global eco system needs. Based in Houston, Texas, DiCentral services clients in over 27 countries around the globe. To learn more, see http://www.dicentral.com, read our blog at http://edi.dicentral.com, follow us on Twitter at http://twitter.com/dicentral and join us on LinkedIn at http://www.linkedin.com/company/dicentral.
ABOUT SEB: SEB’s core expertise is managing specialized Big Data environments, of which healthcare and benefits claims processing is a major focus. SEB uses a SaaS business model to provide software solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients. Health Claims Processing in Canada is a $60.0 plus billion industry, of which over $36.0 billion is employee group benefit plans and over $25.0 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 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 and specialized practice expertise to provide customized, fully integrated solutions for unique claims 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. SEB has unique expertise in tying legacy systems data to new systems environments while providing real time integrated access to the legacy systems data.
This news release is intended for information purposes only. Statements made in this news release may contain “forward looking” information about the company’s future business prospects. These statements while expressed in good faith and believed to have a reasonable basis are subject to risk and uncertainties that could cause actual results to differ materially from those set forth or implied by such forward looking statements. Investors should consult a professional advisor before making any investment decision.
For further information about SEB, please visit www.seb-inc.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.