Press release from CNW Group
DAVIS + HENDERSON COMPLETES ACQUISITION OF ASSET INC.
Tuesday, January 18, 2011
TORONTO, Jan. 18 /CNW/ - Davis + Henderson Corporation ("D+H", "Davis + Henderson" or "the Corporation") today announced it has satisfied all customary closing conditions and completed its acquisition of substantially all the assets of ASSET Inc. ("ASSET").
The acquisition furthers D+H's strategy of being a leading provider of integrated solutions to the financial services industry and, in particular, deepens the Corporation's capabilities across the broader lending spectrum.
Asset is Canada's largest provider of technology based asset recovery and insolvency management solutions to the Canadian financial services industry. On behalf of lenders, Asset uses web-enabled platforms to manage the recovery process around loans provided for moveable property such as cars, trucks, boats and recreational vehicles and provides solutions to support real property recovery, unsecured debt recovery, insolvency process management, and personal property lien search and registration services.
A binding agreement between the two companies was announced on December 23, 2010. The final purchase price was $76 million payable in cash, which D+H financed with an extension of its current credit facilities.
About Davis + Henderson
Founded in 1875, Davis + Henderson provides innovative programs, technology products, and technology based business services to customers in the financial services industry who offer deposit, lending, insurance and wealth management products to consumers and businesses. Davis + Henderson is listed on the Toronto Stock Exchange under the symbol DH. Further information can be found in the disclosure documents filed by Davis + Henderson with the securities regulatory authorities, available at www.sedar.com.
Caution Concerning Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements concerning Davis + Henderson's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the intended dividend policy of the Corporation are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including the following specific assumptions: the ability of Davis + Henderson to meet its revenue targets; general industry and economic conditions; changes in Davis + Henderson's relationship with its customers and suppliers; pricing pressures and other competitive factors. Davis + Henderson has also made certain macroeconomic and general industry assumptions in the preparation of such forward-looking statements. While Davis + Henderson considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the business, or developments in Davis + Henderson's industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements.
Risks related to forward-looking statements include, among other things, challenges presented by declines in the use of cheques by consumers; the Corporation's dependence on a limited number of large financial institution customers and dependence on their acceptance of new programs; stability and growth in the real estate, mortgage and lending markets; as well as general market conditions, including economic and interest rate dynamics. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Davis + Henderson does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change except as required by applicable securities laws.
For further information:
Brian Kyle, Executive Vice President and Chief Financial Officer
Davis + Henderson Corporation