DATA Communications Management Corp. Announces Receipt of No-Action Letter from Canadian Competition Bureau

Rhea-AI Summary

DATA Communications Management Corp. (DCM) announced the receipt of a "no-action letter" from the Canadian Competition Bureau regarding its acquisition of R.R. Donnelley & Sons Company’s Canadian operations. This letter means the Commissioner of Competition does not plan to challenge the transaction, which is anticipated to close in the second quarter of 2023. This marks a significant milestone for DCM as it proceeds with the deal, aimed at enhancing its market position and operational capabilities. The company serves various sectors, integrating solutions to simplify communication and operations.

Positive

• Received a "no-action letter" from the Canadian Competition Bureau, confirming no challenge to the acquisition.
• Acquisition of R.R. Donnelley & Sons Company’s Canadian operations expected to enhance market position.

Negative

• None

BRAMPTON, Ontario--(BUSINESS WIRE)-- DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or the "Company"), a leading provider of marketing and business communication solutions, today announced that it has received a “no-action letter” from the Canadian Competition Bureau, confirming that the Commissioner of Competition does not intend to challenge DCM’s acquisition of the Canadian operations of R.R. Donnelley & Sons Company.

The receipt of the “no-action letter” satisfies one of the conditions necessary for completion of this transaction. The transaction is expected to close in the second quarter of 2023, subject to the satisfaction of other customary closing conditions.

Additional information about the transaction can be found in the investor relations section of DCM’s website, and in the Material Change Report filed by the Company dated March 3, 2023 and available on www.sedar.com.

ABOUT DATA COMMUNICATIONS MANAGEMENT CORP.
DCM is a marketing and business communications partner that helps companies simplify the complex ways they communicate and operate, so they can accomplish more with fewer steps and less effort. For more than 60 years, DCM has been serving major brands in vertical markets including financial services, retail, healthcare, energy, other regulated industries, and the public sector. We integrate seamlessly into our clients’ businesses thanks to our deep understanding of their needs, transformative tech-enabled solutions, and end-to-end service offerings. Whether we’re running technology platforms, sending marketing messages, or managing print workflows, our goal is to make everything surprisingly simple.

Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

FORWARD-LOOKING STATEMENTS
This release and associated material change report contain "forward-looking statements." Forward-looking statements can be identified by words such as: "may," "should," “intend” and "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding the ability of the combined company to realize anticipated benefits from the combination of DCM and RRD Canada; and the ability of DCM to complete the proposed sales and leasebacks of certain properties.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: financial and economic conditions, changes in customer demands and our success in integrating RRD Canada.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230329005605/en/

Mr. Richard Kellam

President & Chief Executive Officer

DATA Communications Management Corp.

(905) 791-3151

Mr. James E. Lorimer

Chief Financial Officer

DATA Communications Management Corp.

(905) 791-3151

ir@datacm.com

Source: DATA Communications Management Corp.

FAQ

What does the no-action letter mean for DCM regarding the acquisition?

It confirms that the Canadian Competition Bureau will not challenge DCM's acquisition of R.R. Donnelley & Sons Company's Canadian operations.

When is the expected completion date for the DCM acquisition?

The transaction is expected to close in the second quarter of 2023, pending other customary closing conditions.

How will the acquisition impact DATA Communications Management Corp. (DCM)?

The acquisition is expected to enhance DCM's market position and operational capabilities.

What is the stock symbol for DATA Communications Management Corp.?

The stock symbol for DATA Communications Management Corp. is DCMDF.