MDC Communications Corp of Toronto announced Tuesday that its Business and Technology Services Group has acquired a 66 percent interest in Qualtech Processing Inc., one of Canada’s largest independent providers of remittance and sales draft processing services to leading corporations and financial institutions. The current management will continue to participate as partners in the future growth and development of the firm.
Established in 1992, Qualtech currently employs 105 people at its operating facility in Markham, Ontario. The company provides remittance and sales draft processing services to such notable organizations as The Bank of Nova Scotia, GE Capital, Consumers Gas, National Retail Credit Corporation, Imperial Oil, and Petro Canada.
“The acquisition of Qualtech fits perfectly with our strategy of providing additional secure transaction products and services to our established customer base,” stated Miles S. Nadal, President and Chief Executive Officer of MDC. “We intend to capitalize on the increasing trend for both financial institutions and corporations to outsource their items processing functions.”
Roy MacNeil, President of Qualtech, commenting on the transaction said, “We were looking for a strategic partner to enable our organization to grow to an entirely new level. With the breadth of resources and relationships within MDC’s Secure Transaction Products and Services Division, we will be able to immediately pursue a number of opportunities which could significantly expand our business.”
MDC’s Business and Technology Services Group, an operating unit of the Secure Transaction Products and Services Division, provides services in areas such as customer communication design, database management, information presentation, statement outsourcing and business process services. This Group intends to expand upon MDC’s long standing customer relationships with financial institutions by offering both additional and complementary services. MDC is planning to expand the Group’s current revenue of $25 million to $250 million within 5 years through internal growth and additional strategic acquisitions.
“We are proud to partner with Qualtech to expand the breadth of outsourcing services we offer our clients in the marketplace,” stated Jon Hantho, President and Chief Operating Officer of MDC’s Business and Technology Services Group.
“The outsourcing market for the types of services that we provide to financial institutions and major corporations is a multi-billion dollar industry across North America, growing in excess of 15 percent annually. The addition of Qualtech allows us to offer specialized business process services that are unmatched by our competitors and highly valued by our customers.”
MDC Communications Corporation is a publicly traded international organization with operating units in Canada, the United States, the United Kingdom, and Australia. The Company is a leading provider of secure transaction products and services as well as communications and marketing services to customers in over 65 countries around the world. MDC has a strong record of growth, generated both internally and from strategic corporate acquisitions. MDC offers secure transaction products and services through four primary areas:
secure personalized products such as cheques and credit, debit, and smart cards; secure ticketing products such as airline, transit, and event tickets; stamps, both postal and excise; and business and technology services such as customer communication design, database management, information presentation, statement outsourcing and business process services.
MDC shares are traded on the Toronto Stock Exchange under the symbol MDZ.A and on the American Stock Exchange under the symbol MDQ. Visit MDC’s website for additional corporate information at: [http://www.mdccorp.com.]