Davis + Henderson To Acquire Cyence International Inc.
TORONTO, Dec. 11, 2008 (Canada NewsWire via COMTEX News Network) — Davis + Henderson Income Fund (TSX: DHF.UN) today announced that its Filogix Segment, Canada’s leading mortgage technology provider, will acquire Cyence International Inc. for $38 million.
Established in 1996, and with clients in Canada, the United States and Australia, Cyence is a leading international provider of credit lifecycle management software and service solutions to the financial services industry. Its premier software platform, ExpressOS(TM), offers a sophisticated suite of lending and leasing front-office solutions that automate, integrate and facilitate the origination, decisioning and loan servicing business processes. Highly configurable, user friendly applications allow clients to create and manage real-time transactions with significantly improved efficiency and savings.
“This acquisition is consistent with our stated strategy of delivering more programs within the lending services marketplace,” said Bob Cronin, Chief Executive Officer of Davis + Henderson. “We are pleased to add Cyence’s product capability, geographical reach and talented team to our organization. This acquisition will expand upon our strategy of evolving our overall business by increasing the depth and breadth of services that we provide to our financial institution customers.”
“Major financial institutions are increasingly seeking answers to meet a wide variety of credit needs, from retail secured and unsecured credit solutions through to small business and commercial lending applications,” said Gerrard Schmid, CEO of Filogix. “Adding Cyence’s highly configurable lending platforms to the Filogix suite of products significantly enhances our ability to better serve our clients. Cyence’s leading position in Equipment Finance, Commercial Banking and Small Business lending complements our leading position in mortgage origination and underwriting. As lenders tighten their lending criteria we also see growth opportunities by providing compliance solutions and specialty lending applications like equipment financing.”
“The acquisition by Filogix will accelerate Cyence’s evolution to the next level” said Peter Hyne, founder of Cyence. “Davis + Henderson and Filogix have a proven track record of delivering enhanced solutions to the financial services industry and share our passion for providing services by applying best-of-breed technology, with a strong customer focus. This transaction will be good for all of our stakeholders, especially our employees and clients. Davis + Henderson’s 130 year history of serving financial institutions brings tremendous depth, breadth and expertise to our existing client relationships.”
This acquisition advances Filogix’s strategy of accelerating growth via a broader base of client-centric products with deeper coverage capability within the credit lifecycle. The multi-language, configurable platform is also ideally positioned to deliver lending solutions for lenders seeking a flexible multi-country product solution across multiple credit products with enhanced internal controls and workflow attributes.
The acquisition is expected to close before the end of December, subject to several closing conditions. Financing for the acquisition will be provided from cash balances and from drawings under Davis + Henderson’s existing credit facilities. The transaction is expected to be modestly accretive to cash flow in 2009.
Filogix is a leading provider of credit solutions ranging from mortgage origination through mortgage underwriting and lending lien registration services, as well as a leading provider of real estate listing technologies. Filogix’s origination systems are used by captive salesforces, brokers and bank branches across Canada, while their underwriting solutions are used by more than 25 lenders across Canada, and their lien registration solutions are used by several of Canada’s largest banks. Filogix also provides connectivity to the mortgage marketplace to mortgage insurance providers, credit bureaus, appraisal firms and credit insurance providers.
About Davis + Henderson
Davis + Henderson and its predecessors have been serving the Canadian financial services industry since 1875. Through integrated service offerings, Davis + Henderson is a market leader in providing programs to customers who offer chequing account and lending services within Canada. Davis + Henderson Income Fund is listed on the Toronto Stock Exchange, symbol DHF.UN.
Caution Concerning Forward-Looking Statements
This news release contains certain statements that constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “forward looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that relate to, among other things, sales growth, expansion and growth of the respective businesses, future capital expenditures and the business strategies of each of Davis + Henderson, Davis + Henderson Income Fund and Filogix (collectively, the “D+H Entities”). While the D+H Entities consider these factors and assumptions to be reasonable, they may prove to be incorrect. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. As such, forward looking statements are subject to inherent uncertainties and a number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to: general industry and economic conditions, changes in the D+H Entities’ relationships with their suppliers and customers, pricing pressures and other competitive factors, the availability and costs of utilities, the results of the D+H Entities’ ongoing efforts to improve cost effectiveness, changes in regulatory requirements affecting the businesses of the D+H Entities and the availability and terms of financing and the ability of Cyence International Inc. to meet its revenue and EBITDA targets. Other Risk Factors are set out and described in the Annual Information Form for the Davis + Henderson Income Fund which is available at www.sedar.com or the Fund’s web site at www.dhltd.com. Consequently, actual results and events may vary significantly from those included in, contemplated by or implied by such forward-looking statements. In evaluating forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from such forward-looking statements. Forward-looking statements are given only as at the date of this press release and the D+H Entities disclaim any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Davis + Henderson will discuss this potential transaction via conference call at 4:00 p.m. EST (Toronto time) on Thursday December 11, 2008. The number to use for this call is 416-644-3417 for Toronto area callers or 1-800-731-5774 for all other callers. The conference call will be hosted by Bob Cronin, Chief Executive Officer of Davis + Henderson, and by Gerrard Schmid, Chief Executive Officer of Filogix. The conference call will also be available on the web by accessing CNW Group’s website www.newswire.ca/webcast/. For anyone unable to listen to the scheduled call, the rebroadcast number is 416-640-1917 for Toronto area callers, or 1-877-289-8525 for all other callers, with reservation number 21291839 followed by the number sign. The rebroadcast will be available until Friday, December 26, 2008. An archive recording of the conference call will also be available at the above noted web site address for one month following the call and a text version of the call will be available at www.dhltd.com.
SOURCE: Davis + Henderson Income Fund
Catherine Martin, Chief Financial Officer, Davis + Henderson Income Fund, 939 Eglinton Avenue East, Suite 201, Toronto, Ontario, M4G 4H7, 1-888-850-6656, firstname.lastname@example.org