Groupworks Financial Corp. announces that the Company has closed its previously announced transaction with People Corporation detailed in the filing statement (the Filing Statement) dated January 27, 2009 filed on the SEDAR website at sedar.com. The Filing Statement provides disclosure on the acquisition of People Corporation, pursuant to a share exchange agreement dated December 31, 2008. People Corporation is the parent of operating companies HealthSource Plus Inc. and People First HR Services Ltd.
The transaction is expected to increase the Company's annual revenue and EBITDA to approximately $20 million and $2.3 million respectively and strengthen Groupworks' position as the leading consolidator of the independent benefit and pension advisory firms in Canada. Groupworks is committed to maintaining and growing HealthSource Plus and People First HR Services under their current brands.
The purchase price for the transaction is approximately $6.25 million, satisfied by the issuance of 15,831,930 common shares of the Company and the issuance of non-interest bearing vendor take-back notes in the aggregate amount of approximately $2.3 million to be paid by the Company over a 5 year period.
Laurie Goldberg, CEO of People Corporation has joined the board of directors and has been appointed to the role of CEO of Groupworks. John Gallivan continues as President of the Company and a member of the board of directors.
Groupworks Closes People Corporation Transaction
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