People Corporation Announces Acquisition of the Apri Group of Companies
November 29, 2019
Apri, as one of the larger independent group benefits consulting firms in Canada, further expands People Corporation’s presence in the Greater Toronto Area, Vancouver and Calgary
Establishes People Corporation as a leading national group benefit Managing General Agent (“MGA”) in Canada, further expanding its distribution reach
WINNIPEG, Manitoba, Nov. 29, 2019 (GLOBE NEWSWIRE) -- People Corporation (the "Company") (TSX Venture: PEO) today announced that it has closed the acquisition of the Apri Group of Companies (“Apri”) (the “Transaction”). Apri is among the largest independent group benefits consulting firms and group benefits MGAs in Canada, generating approximately $17 million in revenue annually. With approximately 110 employees and offices in Richmond Hill, Mississauga, Toronto, Calgary and Vancouver, Apri serves over 600 businesses nationally, while its MGA, under the brand GroupQuest, currently serves approximately 600 group benefits advisors across Canada. In addition, Apri has developed the JungoHR platform, offering a human resources information system (“HRIS”) focused on mid-sized and enterprise-level businesses, complementing People Corporation’s recent acquisition of Collage Technologies Inc.
“In our ongoing journey to build People Corporation into Canada’s premier independent provider of group benefits consulting and third-party administration services, group retirement services and human resource consulting, there are very few opportunities to partner with an organization like Apri, which, over a 13-year history, has established a presence in multiple provinces, built a strong reputation for innovative, client-focused solutions, and forged solid long-term relationships with clients, third-party brokers, and suppliers,” said Laurie Goldberg, Executive Chairman and Chief Executive Officer of People Corporation. “This Transaction adds significantly to People Corporation’s national distribution platform. It immediately establishes us as one of the largest group benefits focused MGAs in Canada and adds meaningfully to our national group benefits consulting operations, in particular growing our presence in the GTA, Vancouver and Calgary. The team at Apri has built an enviable platform, and I would like to personally welcome the entire Apri team to the People Corporation family.”
Apri’s principals will continue to run the operations as part of People Corporation, and its management team and employees will become part of the People Corporation group of companies. All of Apri’s platforms will continue in their current form, and clients, advisors and partners will continue to receive the exceptional customer service, advocacy, expert advice and care that has been a hallmark of Apri’s operating philosophy that emphasizes innovation, service excellence and valued relationships.
Darwyne Lang, founder and CEO of Apri added, “In our discussions with People Corporation we have been impressed with the team, as well as its platform and vision, which are aligned with our own philosophy and approach to the market and the clients that we serve. We have built a business with substantial long-term competitive advantages and we see significant opportunity through this partnership to be able to offer our clients and third-party brokers market-leading, group-focused solutions and bring our experience and expertise to leverage across the organization, while expanding our combined footprint across Canada to service and support plan sponsors, plan members and brokers across all markets.”
People Corporation has agreed to acquire 100% of the issued and outstanding shares of Apri for a purchase price of $45.0 million, subject to post-closing adjustments. Of the total purchase price, $38.6 million was paid in cash on closing of the Transaction, $1.9 million was satisfied through the issuance of 208,695 common shares of People Corporation to certain of the vendors, and the remaining $4.5 million will be paid by way of deferred payments paid to the vendors equally over two years, subject to certain conditions. The cash portion of the purchase price paid on closing was funded through drawing on the Company’s recently expanded credit facility.
About People Corporation
People Corporation (https://www.peoplecorporation.com) is a national provider of group benefits, group retirement and human resource services. The Company has offices across Canada, each led by a team of experts and backed by the resources of a national company that is traded on the TSX-V. The Company’s industry experts provide uniquely valuable insight while customizing an innovative suite of services to the specific needs of its clients. Whatever your sector, whatever your scale, putting People Corporation’s expertise and proven track record to work will make a difference to your people and your bottom line.