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In a move aimed at providing value-enhancing services to Canadian public issuers, TSX Group Inc. today announced the purchase of The Equicom Group Inc. (“Equicom”), a leading provider of investor relations and related corporate communication services in Canada.
Following the closing of the transaction, Equicom will operate as a separate wholly-owned subsidiary of TSX Group.
“We are excited about the potential this valuable new product offering will provide for TSX listed companies,” said Richard Nadeau, Senior Vice President, Toronto Stock Exchange. “Given the nature and profile of our capital markets, it is vital that our issuers obtain high quality investor relations and communications services.”
He went on to say, “Assisting issuers to embrace best practices in communications, it will result in better information transparency, more efficient market evaluation of issuers and thus better capital markets for issuers and investors alike. This acquisition fits perfectly with our strategy of expanding our service offerings and adding value to issuer relationships on both Toronto Stock Exchange and TSX Venture."
TSX Group and Equicom are currently working together in the successful “On the Radar” program. “On the Radar” is a monthly showcase providing TSX and TSX Venture Exchange issuers with an opportunity to present their stories to the professional investment community in Canada's main financial centers (Toronto and Montreal).
“We are pleased to be joining the TSX Group and we look forward to extending our service offering and geographic presence as we move ahead,” said Barry Hildred, President of Equicom. “With an established national presence and extensive relationships and experience within Canadian capital markets, we will provide TSX with a competitive advantage as they look to grow their base of domestic and international issuers.”
Equicom provides a full suite of investor relations and related corporate communications services to approximately 100 public issuers. Founded in 1996, the Company employs 60 professionals in offices in Toronto, Calgary and Montreal. Equicom's revenue was in excess of $13 million for its last fiscal year.
The acquisition is expected to be immediately accretive for TSX Group’s earnings.
There will be a market opening ceremony this morning with officials from TSX Group and Equicom in the TSX Broadcast Centre at 9:30 a.m. Media may pick up a feed from the TOC (television operations centre) for all market open ceremonies. The feed is named TSX Transmit 2 and is produced at the TSX and sent live to the TOC. Officials will move into position for the market open ceremony at approximately 9:27 a.m. and the markets will open with the sound of a SIREN (the traditional market open on Toronto Stock Exchange) at 9:30 a.m.
Certain statements constitute forward-looking statements and are not historical facts but are based on certain assumptions and reflect TSX Group’s current expectations regarding future results or events. These statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially. Some of the risk factors that could cause actual results or events to differ materially from current expectations are outlined in TSX Group’s Annual Report, Quarterly Reports and Annual Information Form filed with securities regulators from time to time.
