TORONTO, ONTARIO--(Marketwire - Nov. 12, 2012) - People Corporation (TSX VENTURE:PEO) ("People" or the "Company") announced today that it is further expanding its Ontario operations through the acquisition of Prosure Group Administrators and Prosure Insurance Agencies Inc. (collectively "Prosure").The acquisition has an effective date of November 1, 2012.
Prosure was established in 1987, and provides employee benefits solutions, consulting services and third party administration services to over 300 mid-market corporate clients, the majority of which are located in Ontario. Prosure's unique product mix which includes cost plus arrangements and health spending accounts, combined with its third party administration platform and its client service model, has allowed it to grow significantly over the past 25 years, securing clients that include well-recognized household brands, as well as attracting a successful network of associate brokers that promote Prosure's products and services.
"Prosure's principals, Chuck McGuire and Rod Wartman have built a highly-regarded employee benefits and third party administration business that delivers customized benefit solutions to its clients. People Corporation is especially excited about some of Prosure's niche product offerings and customized administration platforms, which we believe can be enhanced through this partnership with People Corporation and will be leveraged across our entire Company," said Laurie Goldberg, Chairman and CEO of People Corporation.
"We are extremely pleased to be partnering with People Corporation and believe that the additional resources that People Corporation provides will allow us to not only offer enhanced services to our existing valued clients, but will also provide access to a more dynamic platform for seeking new business opportunities," said Chuck McGuire, founder of Prosure.
The acquisition of Prosure closely follows on the acquisition of JSL Inc. that was announced in September, 2012, and is the Company's ninth acquisition since 2006. "We believe that this acquisition further demonstrates our value proposition to potential partners and builds upon our strong momentum in growing the Company," continued Mr. Goldberg. "People Corporation's strategy includes partnering with strong firms and making them stronger by providing them with the deeper resources of a national benefits and human resources company that has the financial capital and operational scale to prepare them for the next level of growth."
About People Corporation
People Corporation is a leading employee benefits, group retirement and human resource consulting firm in Canada. With a growing national footprint and fourteen offices across seven provinces, the Company is bringing together the leading consultants in the industry, offering innovative and customized human resource, benefit and pension solutions to its clients. Additional corporate information is available at www.peoplecorporation.com.
This news release contains "forward-looking information" within the meaning of applicable securities laws, such as information concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Use of words such as "may", "will", "expect", "believe", or other words of similar effect may indicate forward-looking information including the completion of the transaction, the impact of that transaction on our earnings and cash flow, and the anticipated benefits of the transaction. This information is not a guarantee of future performance and is subject to numerous risks and uncertainties, including those described in our publicly filed documents (which are available on SEDAR at www.sedar.com). Those risks and uncertainties include: our ability to maintain profitability and manage growth; strong competition from other consultants and changes in the current legislation could result in significant competition from the banking industry; failure of information systems and technology; dependence on key clients; seasonality of revenues and the resulting possible impairment on working capital; reliance on key professionals; additional financing may be required and may not be available under terms favourable to us; there can be no assurance that any suitable future acquisition will be available to us or that, if available, the terms of the acquisition will be favourable to us; and a change in general economic conditions. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking information made by us or on our behalf. Given these risks and uncertainties, investors should not place undue reliance on forward looking information as a prediction of actual results. All forward-looking information in this news release is qualified by these cautionary statements. This information is made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise. Additionally, we undertake 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.
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 press release.
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