People Corporation

People Corporation

June 23, 2014 08:30 ET

People Corporation Announces Acquisition of Fairles Benefit Services Inc.

WINNIPEG, MANITOBA and TORONTO, ONTARIO--(Marketwired - June 23, 2014) - People Corporation ("People" or the "Company") today announced the acquisition, through its wholly owned subsidiary, Bencom Financial Services Group Inc. ("Bencom"), of the group benefits business of Fairles Benefit Services Inc. ("FBS") based in Waterloo, Ontario. Established in 1991, FBS provides group benefits and group retirement consulting to a broad range of clients in the Southwestern Ontario region, and has built a solid reputation for outstanding client service. With the addition of this leading firm, People has notably increased its presence in the Ontario market. FBS will continue to operate as Fairles Benefit Services Inc. in close association with Bencom.

Laurie Goldberg, Chairman and CEO of People Corporation, commented, "We are thrilled to announce yet another acquisition in the Kitchener/Waterloo area, following on the previous successful transaction with Bencom of Kitchener, Ontario in December 2012." Mr. Goldberg continued, "The opportunity to add FBS, another firm with an excellent reputation in the region, to the People Corporation family is exciting for us. Together with Bencom, FBS further strengthens our already strong presence and reputation in the Southwestern Ontario market."

Mr. John Fairles, founder of FBS added, "I am very pleased that FBS is joining with Bencom and the People Corporation group of companies. As an established and growing firm, we wanted to partner with a like-minded company that shared our commitment to providing exceptional products, services and advice to our clients. The access to proprietary products, additional resources, enhanced back office support and customized services that this partnership brings will significantly benefit our existing valued clients and also provide a more dynamic platform for seeking new business opportunities."

Mr. Dino Costabile, Practice Leader of Bencom, commented "This is a great opportunity for Bencom to be partnering with FBS and John Fairles under the People Corporation umbrella. Together, we are strongly positioned for future growth, backed by the national presence, strength and leadership position of People Corporation."

Terms of the transaction, which closed as of June 19, 2014, are not being disclosed. The Company expects the transaction to have an immediate positive impact on revenue and EBITDA. The purchase price for the transaction will be funded through existing cash resources, including from the proceeds of the Company's recent private placement of common shares completed in April 2014.

Mr. Goldberg concluded, "FBS represents People's third transaction so far this year, and closely follows the acquisition of Bryan H. Lupe and Associates of Winnipeg, Manitoba in May. The success in the transaction-based component of our growth plan, combined with our strong organic growth in the past number of years, has driven tremendous top and bottom line growth for our company. As a result, People is one of Canada's fastest growing companies and, as recently announced, has once again been named to the PROFIT 500 Fastest Growing Companies List."

About People Corporation

People 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. Our industry experts provide uniquely valuable insight while customizing our innovative suite of services to the specific needs of our clients. Whatever your sector, whatever your scale, putting our expertise and proven track record to work will make a difference to your people and your bottom line.

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Forward-Looking Information

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 Those risks and uncertainties include: our ability to maintain profitability and manage growth; strong competition from other advisors 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.

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