Pethealth Inc. to Acquire Certain Assets of PurinaCare's Pet Insurance Operations
OAKVILLE, ONTARIO--(Marketwire - March 27, 2013) - Pethealth Inc. (PTZ.TO) ("Pethealth") has, through its subsidiary PTZ Insurance Agency, Ltd., entered into an asset purchase agreement (the "Agreement") with Nestlé Purina Claims Processing, Inc. and PurinaCare Insurance Services, Inc. (together, "Purina") whereby Pethealth has agreed to acquire certain assets of Purina's pet insurance operations relating to the administration of Purina's pet insurance program and the rights to the subsequent policyholder renewals. (the "Acquisition").
Consideration for the Acquisition is to a maximum of US$800,000 for the approximately 12,000 current policyholders. The all-cash transaction is being financed through a 3 year loan agreement with a recognised financial institution at a fixed interest rate of 6 month LIBOR plus 2.25%. The Agreement is subject to customary closing conditions. Until all the closing conditions are satisfied or waived, there can be no assurances that this transaction will be completed. If all closing conditions are satisfied, closing is expected to occur on or before May 1, 2013.
About Pethealth
Pethealth is North America's second largest provider of medical insurance for dogs and cats to pet owners, operating in the United States, Canada and the United Kingdom. In addition, the Company is the leading provider of management software to North American animal welfare organizations through its cloud based application and is the leading provider of pet related database management services to the North American companion animal industry. Pethealth offers a unique range of products and services for veterinarians, shelters and pet owners through a number of wholly owned subsidiaries using a range of brand names including PetCare, 24PetWatch, Pet Protect, Petpals Direct, PetPoint, Petango.com and ThePetangoStore.com.
Pethealth is based in Oakville, Ontario. To find out more about Pethealth, visit the web site at www.pethealthinc.com.
Forward-looking statements
This press release contains information that is forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts.
Forward-looking information by its nature necessarily involves risks and uncertainties including, without limitation, the difficulty of predicting the current regulatory and supervisory environment, the timing and conditions to obtaining any regulatory approval, reliance on insurance underwriters for pet insurance policies, market acceptance and demand for existing and new products and services, including PetPoint and EVE Software and the 24PetWatch microchip program, the Company's ability to maintain and service new and existing customers, the protection of intellectual property associated with its products and services, the impact of competition generally and new competitive products, currency and foreign exchange fluctuations, risks associated with the Company's customer care solutions facility, and related risks and uncertainties. Additional risks and uncertainties affecting the Company can be found in the Company's Annual Information Form available on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. The Company disclaims any intention or obligation, other than those required by security laws, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
