DENVER, CO--March 5, 2013
ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS:IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today is pleased to announce that its indirect wholly owned subsidiary IDR Processing, LLC ("IDR") has entered into a definitive agreement to acquire approximately 1,900 identity theft protection customers and related assets (the "Customer Assets") from iSekurity, Inc.("iSekurity").
IDR will acquire the Customer Assets from iSekurity in exchange for 1,000,000 restricted ordinary shares of ID Watchdog. The number of shares issued upon closing may be reduced if certain customer transition conditions are not met. In addition, if certain net sales (as defined in the purchase agreement) targets are achieved, the Company will be required to issue up to an additional 1,000,000 restricted ordinary shares to iSekurity by no later than the second anniversary of the closing of the purchase. The acquisition is expected to close in late March or early April 2013, and is subject to customary closing conditions, including the approval of iSekurity's shareholders.
In the first year of ownership the Customer Assets are expected to generate revenue in a range from $400,000 to $500,000 and operating income, excluding acquisition related expense, in a range from $100,000 to $125,000.
In addition, on February 12, 2013, IDR entered into a services agreement with iSekurity to provide billing, customer support and identity theft protection and resolution services to iSekurity's customers. The services agreement will continue until the earlier of the closing of the purchase of the Customer Assets or February 28, 2014.
Michael Greene, CEO, commented, "The acquisition not only adds an additional 1,900 customers to our customer base, but it also brings to us a new channel relationship from which we can further expand our customer base." Mr. Greene continued, "while we continue to drive our employee benefits and anti-virus/tech support channels, we will also seek to acquire other identity theft protection customers and/or companies to allow us to grow our revenue base and exploit operating efficiencies across our best-in-class infrastructure."
Financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent quarterly reports and our annual report. These documents are available online at www.sedar.com and in the "Company Overview" section of our website at www.IDWatchdog.com.
About ID Watchdog, Inc.
ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides patent-pending, three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ID Watchdog, Inc.
Jay B. Lewis
Chief Financial Officer