Under the terms of the agreement, Unify will make an initial payment of $455,000, and then performance-based retention earn-out payments of $1.1m, half cash and half Unify common stock, over the next three years. Additionally, Unify will assume approximately $150,000 of net liabilities and deferred revenue.
Unify views the acquisition as an important advancement in its strategy to enter specialty vertical markets in expanding industries, and to capitalize on new market opportunities.
It will also gain local government risk pool agencies including the Association of California Water Agencies, Iowa League of Cities, North Carolina League of Municipalities, Program Management Services, Public Risk Underwriters and Special District Risk Management Authority (SDRMA).
Acuitrek is expected to benefit from the move by gaining the ability to accelerate client implementations and widen its competitive advantage. It believes the agreement will further improve its capabilities of enabling risk pools and self-insured public entities to automate manual processes, enhance analytical capability and reduce operating costs relating to insurance policy administration and underwriting.
