04 January 2016

PetLynx Moves to Sell HomeSafe™

World’s best/only automated RTO service HomeSafe™ is ready for Prime Time

PetLynx Corporation says it is putting HomeSafe™ Canada’s largest and fastest growing Return to Owner (RTO) service up for merger or sale.

Since 2009, PetLynx has invested 9 million $CAN to build and commercialize the world’s Best/Only automated RTO service for urban municipalities. The system now supports 1.02 million Active Residual Subscribers (ARS) and returns pets home in more than 340 Canadian municipalities. As PetLynx begins to look south, management acknowledges success in the US market will require sufficient resources and/or a partner that adds operational strength to PetLynx.

Over the past eight years, PetLynx has developed a global Digital Channel and Gathered Subscribers with the lowest cost of acquisition in the industry. HomeSafe™ delivers irrefutable evidence for creating a trusted ‘ecosystem’ by Growing Digital Services. HomeSafe™ is clearly the lowest cost service provider in North America. As the lowest cost service provider, HomeSafe™ has a competitive advantage during emergence and the ability to drive substantial profits as the play matures.

“Management has met with professionals that are expert in mergers, acquisitions and auctions,” said Thomas R. Trifaux, PetLynx Board Chair. “I am confident we will soon contract with an organization that can extract value for an emerging play like HomeSafe™. Our intent is to deliver good value to our shareholders while we resource and enhance service offerings for our HomeSafe™ subscribers.”

According to recent research, valuing subscriber plays is more of an art than a science. As a subscriber play, the HomeSafe™ RTO service would likely be valued by multiplying the number of Active Residual Subscribers by the loyalty/experience factor and the number of dollars of free cash flow over the forecast period. HomeSafe™ has delivered an industry leading loyalty/experience factor of 6.2 years which should drive an industry leading valuation.

However, several other factors are likely to influence the HomeSafe™ valuation. New privacy and Ecommerce legislation, the decline of ‘blast and cast’ marketing strategies and a new understanding of subscriber preferences has moved brands to acquire entire ‘ecosystems’ at a premium over other calculations. In fact, for brands that wish to access a developed ecosystem or brands that need a compliant opt-in channel for their services, the value of HomeSafe™ may be well beyond a subscriber based calculation.

According to PetLynx Managing Director, Larry R. Evans, “The patient approach of PetLynx shareholders to create technology and to develop a proven ecosystem is something of real value in the digital economy. I believe, from every perspective, HomeSafe™ is ready for prime time.”

1 comment:

  1. I couldn't agree more. PRIME TIME indeed!