Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, announced today a further strategic expansion of its property information business in the UK through the acquisition of xit2 Limited (xit2), an emerging leader of information exchange solutions that enable lenders to manage the electronic information exchange with home surveyors and other outsourced service providers. The consideration for this transaction is a cash payment of GBP 10 million on closing, and up to 2.5 million in contingent future payments based on performance. The acquisition is expected to be slightly accretive this year.
Located near Oxford (west of London), xit2 derives its revenues predominantly from its Valuation Exchange, which provides a growing number of lenders with an electronic information exchange solution to manage their outsourced home valuations. These home valuations are conducted by a large number of certified home surveyors located throughout England and Wales. Today about 6,500 home surveyors are paid subscribers of the Valuation Exchange, and over 25% of all home surveys ordered by lenders flow through the Valuation Exchange.
In addition to the Valuation Exchange, xit2 is operating a Repossession Exchange, which electronically connects and coordinates all parties involved in a home repossession, as well as a Conveyancing Portal, which links lenders to conveyancing solicitors to process the refinancing of mortgages. The company is also developing several electronic exchange solutions related to the Home Information Pack (HIP), which will become mandatory by June 2007.
Paul Duckworth, CEO of xit2, said “MDA is an internationally known and respected multinational company which specializes in leading edge property information solutions for government and business customers worldwide; in the UK MDA is already a leading provider of authoritative property search information, and is one of the very first to offer an electronic precursor HIP solution; this relationship with MDA will provide us with the framework and resources required to maximize our expansion plans once the HIP market has become a reality next year.”
Added Daniel Friedmann, MDA President and CEO: “xit2 represents another important building block in our strategy to become a leading supplier of property information in the UK; this acquisition accomplishes three strategic objectives in one: First, it significantly broadens our access to home surveyors to meet the demand for home condition report required for HIP; second, it provides us with access to the rapidly emerging market for home valuation solutions needed to approve mortgage applications in the HIP era; and third, it expands our role from being an information provider to participation in the exchange networks over which the information is safely and securely exchanged between financial institutions and professionals.”
MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.
Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of earth and space based information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.
MDA employs more than 2,700 people in locations across the United States, the United Kingdom, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA.
About xit2 Limited
The xit2 group consists of The Valuation Exchange (VEx) provides lenders with an electronic information exchange solution to manage their outsourced home valuations. These home valuations are conducted by a large number of certified home surveyors located throughout England and Wales.
The Repossession Exchange (REx) electronically connects and coordinates all parties involved in a home repossession.
The Conveyancing Portal (CPL) links lenders to conveyancing solicitors to process the refinancing of mortgages. The company is also developing several electronic exchange solutions related to the Home Information Pack (HIP), which will become mandatory by June 2007.
This release contains forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and MDA's actual results of operations could differ materially from historical results or current expectations. Additional information on these and other potential factors that could affect MDA's financial results are detailed in documents filed from time to time with the applicable Canadian securities regulatory authorities.
The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.