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Acquisition for In-Touch
In-Touch Survey Systems has announced that it will acquire MarketLine Research Inc., supplier of the MarketVU CATI / analysis system. In-Touch also announced first quarter revenues up 20% over Q1 2006 but short of previous guidance estimates.
MarketLine will be acquired for cash from In-Touch's own funds, and a promissory note payable over five years.
MarketLine, whose 2007 revenues exceeded $750,000, was founded in Minneapolis in 1995. It bases its products and services around its MarketVU call centre and software technology, which includes a tabulation and reporting engine in addition to CATI.
In-Touch CEO Michael Gaffney says the purchase will give his firm 'a new complimentary data collection technology, which strengthens and broadens our product line, along with new customers and a sales and service hub for the Midwest USA'.
Gaffney says the shortfall in Q1 revenues and anticipated negative Q1 earnings result from delays in orders from one major financial sector customer, which has delayed its planned program and purchases 'for the first quarter and most likely the second quarter'. Gaffney says that while the client deals with its recent acquisition and reorganisation, plus fallout from the US sub-prime crisis, uncertainty about when it will scale up its purchasing means In-Touch is trimming costs and infrastructure previously put in place to manage the client.
In-Touch, which is said to be 'on target with its sales growth estimates from all other customers', expects the MarketLine buy to close 'in the next several weeks' pending board and regulatory approvals. Web site: www.intouchsurvey.com .
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