Smart Employee Receives $38 Million In New Contracts

Smart Employee Benefits Inc., through its operating entities, has been awarded new contracts valued in excess of $38-million. These contracts extend out as long as six years, including option years, with the majority of revenue realized in the two- to four-year range. These contracts are all net new business and add to Smart Employee's recurring revenue contract value, increasing this value to over $450.0-million. The contracts were competitive RFP (request for proposal) bids. Smart Employee's RFP win rate in the past year is greater than 65 per cent, an increase from greater than 50 per cent in fiscal 2020 and greater than 30 per cent in 2019. Its RFP win rate has been steadily increasing since 2019. The RFP wins, together with channel partner white-label TPA client acquisition transactions, are steadily increasing the company's contract values. Today, the company has visibility on over 90 per cent of 2022 budgeted revenues and over 80 per cent of 2022 forecast revenues out to 2025. Smart Employee's contracts are largely recurring-revenue managed service business with contracts ranging out as long as nine years.

These contract awards reinforce Smart Employee's strong positioning as one of the leading suppliers of expertise in information technology and benefit processing (software, solutions and services) to both the enterprise and public sectors. 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 Smart Employee's client base, even in times of economic turmoil.

To support its growing business, the company has entered into an amending agreement with its lender with respect to its $10-million revolving credit facility to amend the definition of the term "borrowing base" therein, thereby allowing the company to increase the utilization under such credit facility.

Stated Mohamad El Chayah, chief operating officer of Smart Employee and president and chief executive officer of SEB Administrative Services Inc.: "We continue to experience increasing demand in all three business lines, IT services (ITS), business process services (BPS) and professional services (PS), and across all six practices, cloud computing, digital solutions and services, enterprise and cybersecurity, data management, business process outsourcing, and project services. These new contract wins reflect the effectiveness of our operating model to be responsive to market drivers and customer needs and provide the efficiency and value extraction to win in increasingly complex market conditions. We are very pleased to see our growth momentum continue with this strong start to 2022. This builds on the record wins of $140.0-million in 2021. We are thrilled to see more of our technology and people solutions driving the digital transformation journey for our clients in the public, enterprise and emerging market segments. Our recent ISO 27001 certification further strengthens our competitive advantage in winning new business and renewing existing contracts."

About Smart Employee Benefits Inc.

Smart Employee is a proven provider of leading-edge IT and benefit processing software, solutions and services for the life and group benefit marketplace and government. It designs, customizes, builds and manages mission-critical, end-to-end technology, people and infrastructure solutions using Smart Employee's proprietary technologies and expertise and partner technologies. It manages mission-critical business processes for over 150 blue-chip and government accounts, nationally and globally. Over 90 per cent of its revenue and contracts are multiyear recurring revenue streams contracts related to government, insurance, health care, benefits and e-commerce. Its solutions are supported nationally and globally by over 600 multicertified technical professionals in a multilingual infrastructure from eight offices across Canada and globally.

Its solutions include both software and service-driven ecosystems, including multiple software-as-a-service solutions, cloud solutions and services, managed services offering smart sourcing (near shore/offshore), managed security services, custom software development and support, professional services, deep system integration expertise, and multiple specialty practice areas, including artificial intelligence, CRM, BI, portals, EDI, e-commerce, digital transformation, analytics and project management, to mention a few. The company has more than 20 strategic partnerships/relationships with leading global and regional technology and consulting organizations.