We have had a personal and business relationship with John McKimm for many years and have been impressed with John's vision and his ability to expedite growth. With SEB and John as our partners, SOMOS' growth strategy moves beyond organic initiatives to include acquisitions.
Over the past months we have formulated a growth strategy that is very exciting. In addition to the increased financial strength of SOMOS, SEB significantly expands opportunities for SOMOS to bring additional value to our clients, particularly in providing software, solutions and services in healthcare and supply chain solutions. The transaction with SEB brings critical mass, capital and expertise to expedite growth for SOMOS with Ottawa clients and on a national scale. The synergies between the companies are significant."
John McKimm, President/CEO of SEB, stated, "We have had a long term relationship with SOMOS, both business and personal. We have tremendous respect for both Alan and Adam. SOMOS has a strong base of business in Ottawa, particularly within the federal government. There are significant opportunities to provide high value-added solutions with SOMOS clients both in healthcare and supply chain. The SOMOS Transaction will give SEB access to vendor relationships and the client credibility to expedite sales opportunities in a very important sector of the Canadian marketplace for SEB. We are looking at SOMOS as the base platform for launching an organic and acquisition growth strategy in the Ottawa area.
We have identified major strategic opportunities for SEB which will be significantly expedited with the SOMOS transaction. We are excited about the prospects of bringing Alan and Adam into the SEB executive team. As a result of this transaction, Alan and Adam will both have significant shareholdings in SEB and will add depth, skills and business relationships to the SEB executive team.
SOMOS will be operated as the Ottawa base for the SEB Group of Companies, while maintaining its current brand and software, service, and solution offerings. SOMOS is expected to significantly enhance the opportunities for SEB health claims processing solutions with SOMOS' clients. As a result of the SOMOS Transaction, SEB has elected to not close the Joint Venture Agreement or the Investment by China-based HighCom."
SEB'S GROWTH STRATEGY:
Mr. McKimm further stated, "A key component of SEB's growth strategy in 2013 is acquisitions. Acquisitions will have three objectives: (1) the acquisition of key client and vendor relationships in both government and corporate sectors, (2) the acquisition of unique technologies that enhance SEB's technology solutions, particularly in healthcare, and (3) expediting the path to consolidated profitability while expanding a strong base of clients and sales to launch organic growth initiatives. The acquisitions of Logitek Technology Ltd. ("QLogitek"- closing announced February 7, 2013) and SOMOS (closing announced March 5, 2013) accomplishes all of these objectives. Each company has a strong foundation of annuity revenue from a high quality client base and a consistent history of profitability and positive cash flow. The synergies between the two companies include sales and technology opportunities, along with operational cost savings. SEB has also identified a number of other strategic acquisitions which are in various stages of negotiations. All acquisition targets are profitable and will significantly expedite SEB's organic growth strategies, both revenue and profitability, as SEB and SEB subsidiaries deploy SEB technology solutions and sales strategies across the consolidated client base."
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. This is a $56.0 billion industry, of which over $33.0 billion relates to employee group benefit plans and over $23.0 billion relates to 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 a licensed third party administrator ("TPA") and insurance broker 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 solutions for highly specialized environments (e.g.: travel claims, etc.). The technology and expertise deployed in this healthcare area also allows SEB to provide other related supply chain, systems integration and human resource solutions and services to the same clients.
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 the Company, please visit www.seb-inc.ca.
SOURCE Smart Employee Benefits Inc.
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.
Smart Employee Benefits Inc.
President/Chief Executive Officer
Smart Employee Benefits Inc.
Vice President, Marketing
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