SEB Group Awarded Net New Contracts Valued >$27.0M Total Contract Wins in First Half Fiscal 2021 > $69.0M
MISSISSAUGA, Ontario, June 01, 2021 (GLOBE NEWSWIRE) — Smart Employee Benefits Inc., (“SEB”, TSXV:SEB), through its operating entities, has been awarded net new contracts valued in excess of $27.0M during the month of May, 2021. Clients included the Government of Canada and various corporate entities. The contracts extend out as long as 5 years. They include benefits processing contracts valued at over $2.0M and IT solutions and services valued at over $25.0M. This brings net new contract wins to in excess of $69.0M for fiscal 2021 year to date. The contracts are all net new business wins and add to SEB’s recurring revenue contract value. The majority are related to RFP (Request for Proposal) competitive bids. SEB’s RFP win rate in the past 6 months is >70%, an increase from >50% in fiscal 2020 and >30% in 2019. Our RFP win rate has been steadily increasing since 2019. RFP wins together with our Channel Partner client acquisition transactions are steadily growing our contract values. Today we have visibility on over 80% of 2021 revenues over the next 4 years with contract terms as long as 9 years and contract values in excess of $400M. In addition, we have over $100.0M of contract value in our sales pipeline where decisions are pending in 2021.
These contract awards and our sales pipeline reinforce SEB’s strong positioning in the IT sector as one of the leading suppliers of expertise in Information Technology and Benefits processing (software, solutions, services) to both the Enterprise and Public sector. These awards come at a time when Governments (Federal and Provincial) and corporations are responding to the dynamic challenges of Covid-19 and the concurrent need to increasingly digitize and automate business processes. The wins also indicate the stability of SEB’s client base, even in times of economic turmoil.
The Company has granted share-based compensation to its independent directors. Pursuant to the Company’s Omnibus Long-Term Incentive Plan (the “Plan”), the Company has granted an aggregate of 261,026 restricted share units (“RSUs”) to its directors in accordance with the Plan as partial payment of first quarter, 2021 Director’s fees. The RSUs will vest immediately. Each vested RSU entitles the holder to acquire one common share of the Company. Each Director is mandated to take a minimum 25% of their quarterly Director’s fees in RSUs. Directors have the option to take up to 100% of their fees in RSUs pursuant to the Omnibus Plan parameters.
States John McKimm, President/CEO of SEB: “These net new contract bookings reflect the effectiveness of our operating model in responding to customer needs in providing the efficiency and value to win in increasingly complex markets. Our sales pipeline is the strongest it has ever been. Our technology and people solutions are leading edge and highly cost-effective in driving the digital transformation journey for our clients in the public, enterprise and emerging market segments.”
About Smart Employee Benefits Inc. (“SEB”):
SEB is a proven provider of leading-edge IT and benefits processing software, solutions and services for the Life and Group benefits marketplace and government. We design, customize, build and manage mission critical, end-to-end technology, people and infrastructure solutions using SEB’s proprietary technologies and expertise and partner technologies. We manage mission critical business processes for over 150 blue chip and government accounts, nationally and globally. Over 90% of our revenue and contracts are multi-year recurring revenue streams contracts related to government, insurance, healthcare, benefits and e-commerce. Our solutions are supported nationally and globally by over 600 multi-certified technical professionals in a multi-lingual infrastructure, from 8 offices and 2 affiliated offices across Canada and globally.
Our solutions include both software and services driven ecosystems including multiple SaaS solutions, cloud solutions & services, managed services offering smart sourcing (near shore/offshore), managed security services, custom software development and support, professional services, deep systems integration expertise and multiple specialty practice areas including AI, CRM, BI, Portals, EDI, e-commerce, digital transformation, analytics, project management to mention a few. The Company has more than 20 strategic partnerships/relationships with leading global and regional technology and consulting organizations.
This news release is intended for information purposes only. Statements made in this news release may contain “forward-looking” information about the company’s future business prospects. These statements while expressed in good faith and believed to have a reasonable basis are subject to risk and uncertainties that could cause actual results to differ materially from those set forth or implied by such forward looking statements. Investors should consult a professional advisor before making any investment decision.
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