SYMBILITY SOLUTIONS ANNOUNCES ACQUISITION OF BNOTIONS
AND PROVIDES BUSINESS UPDATE
Acquisition Accelerates Symbility’s Strategy to Provide Consumer Self-Service Mobile Applications
TORONTO, ONTARIO — (June 29, 2015) Symbility Solutions Inc. (TSX.V: SY) (“Company”), a global leader developing cloud-based software applications for the property and health insurance industries, announced that it has acquired BNOTIONS, a mobile strategy and data analytics firm focused on the design and development of leading technologies in the areas of mobile, the Internet of Things (IoT), Machine-to-Machine (M2M), and wearables. Symbility estimates that the transaction will add, on an annual basis, approximately $5 million in revenue.
BNOTIONS has been recognized as the partner of choice for organizations looking to disrupt through innovation and winning awards while doing so including; the 2014 Hot Company (Gold) – Network Products Guide Awards; 2014 Employer of the Year – Toronto Region Board of Trade; Momentum Company of the Year – 2014 Technology Leadership Awards; 2014 Communicator Award of Excellence; W3 Award; Horizon Interactive Award; Webby Awards Honoree; Profit 500; Branham 300; and EY Entrepreneur of the Year Finalist. BNOTIONS’ customer base includes multiple verticals with the insurance, health, and finance industries making up over 40 percent of revenues.
“The insurance industry is facing more disruption than any other commercial sector and carriers need to find ways to engage policyholders in a dynamic fashion to compete with new marketplace entrants like Google and Amazon,” commented James Swayze, CEO of Symbility Solutions. “The combination of BNOTIONS’ expertise and Symbility’s mobile and video collaboration technology create tremendous value for our customers as they pursue new methods to grow their business through innovation.”
Swayze continued, “BNOTIONS’ exposure to businesses outside the insurance industry will allow us to gain insights into the most advanced interactive environments enabling us to lead our customers into these new areas. The average policyholder is no longer comparing insurance companies in isolation, but matching their user experience to every vertical and mobile application they use. As sensor innovations drive new data collection from the connected car, home and wearables, BNOTIONS will help Symbility strengthen our reputation as thought leaders and market disruptors in the industry.”
Paul Crowe, CEO of BNOTIONS added, “As insurance products are increasingly looking to innovate and deepen their offerings such as delivering home and auto maintenance, or converging health and pharma care with fitness, the union of BNOTIONS proficiency in both technology and user experience design with Symbility’s subject matter insurance knowledge is powerful.”
Details of the Acquisition
The purchase price of the acquisition is $1 million cash on closing (with standard adjustments for working capital changes), and up to $1 million cash paid over the next 10 months (a portion of which is subject to financial performance of BNOTIONS), and 5.5 million Common Shares and 1 million Common Share purchase warrants for total consideration of approximately $3.8 million. In addition, the Company issued 2 million Restricted Shares (including 526,000 Restricted Shares to senior management) and will issue 1.6 million Stock Options (including 500,000 to senior management) to employees of BNOTIONS on June 30, 2015.
Symbility intends to operate BNOTIONS as a wholly-owned subsidiary. The BNOTIONS brand will continue but will leverage the advantages of being part of the Symbility Solutions family. The management team, as well as the staff that support them, will be continuing on and be the primary operators of the subsidiary.
Fire Power Capital were advisors in the transactions for BNOTIONS and Cairn Merchant Partners were advisors to Symbility Solutions.
Symbility Business Update
- Symbility’s Property division is currently engaged in 7 software pilot programs with major insurance carriers and supply chain vendors. The Property division has an additional 14 pilot programs scheduled to begin in the second half of the year. The geographic breakdown of pilot programs are as follows; Americas – 11, EMEA – 6, and Asia Pacific – 4.
- Based on information available as of June 28, 2015 the Company expects revenue for the period of July 1, to December 31, 2015 to be $15 million.
Symbility will host a conference call Tuesday, June 30, 2015, at 10 a.m. ET to provide a business update. The conference call will be webcast. All interested parties are welcome to join the live webcast, which can be accessed at http://www.gowebcasting.com/6618. Participants may also join the conference call by dialing toll free 1-877-291-4570 or 1-647-788-4919 for international participants.
Symbility is pleased to announce that it has engaged Investor Cubed Inc. to provide investor relations and shareholder communications services, subject to TSX Venture Exchange approval. Investor Cubed will be focused on increasing investor awareness while introducing Symbility to its network of investment advisors, investment dealers, institutions and other financial professionals. In connection with the engagement, Investor Cubed has been awarded a consulting contract of $5,000 per month for a term of twelve months and 100,000 options to be issued June 30, 2015.
In addition, the Company will issue 50,000 options June 30, 2015 to Michael Torok, a newly elected director to the Board of Directors.
About BNOTIONS Inc.
BNOTIONS is an award winning mobile, data and analytics innovation firm. As the partner of choice for organizations with the desire to disrupt, BNOTIONS delivers large and complex deployments while retaining a boutique approach to best-in-breed quality and agility. Our proprietary methodology delivers measurable, effective, data-driven product innovation, from strategy to launch and beyond. Put simply, BNOTIONS enables organizations of any size to think and act like a startup. Learn more at www.bnotions.com.
About Symbility Solutions Inc.
Symbility® Solutions® (TSX.V: 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.
Caution Regarding Forward-Looking Information
This press release may contain forward-looking statements with respect to the Company, its products and operations and the estimated value and future operation relating to the BNOTION acquisition and the Company’s future opportunities and expected financial performance. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations, and the factors described under “Risk Factors” in the Management’s Discussion and Analysis and Annual Information Form of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.
Neither 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.
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