REGINA, SASKATCHEWAN--(Marketwired - Jan 23, 2017) - Information Services Corporation (ISV.TO) ("ISC" or the "Company") today announced that it has completed the acquisition of all issued and outstanding common shares of Enterprise Registry Solutions ("ERS"), a global leader in the development and implementation of registry technology. This acquisition enhances ISC's core registry offering by adding leading registry technology solutions and consultancy services.
Commenting on the transaction, Jeff Stusek, President & CEO of ISC said "This is a strategic acquisition for ISC. The strong reputation and extensive experience of ERS in the registry market complements our own." Stusek continued, "As governments and private sector organisations are exploring ways to improve the delivery of their registry services, we are even better positioned to fulfill that need."
ISC financed the acquisition using a combination of cash and the Company's existing debt facility. CAD$14 million of the purchase price was paid on completion of the transaction and up to EUR5 million in consideration is contingent on the retention of existing leadership and realization of future business.
Key Highlights
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Complementary to our core business and focused on the pursuit of similar customers and opportunities with a customer-centric approach.
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Adds leading technology solution which strengthens our full-service customer value proposition and serves as an additional platform for growth in the registry business.
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Augments registry expertise and talent with global perspective and competencies, particularly in software development, product delivery and business development.
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Strengthens ISC's global market presence - together we can compete more effectively by adding this established registry solution and industry relationships to our existing core business.
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Builds on a relationship established to implement the RegSys solution for the Saskatchewan Corporate Registry.
ISC anticipates that the market for registry opportunities will continue to expand and believes that the addition of ERS will enhance its ability to compete more effectively for new registry business by adding a leading registry technology solution to our offering. The acquisition of ERS is not expected to be immediately accretive to ISC's earnings per share in 2017. Capital expenditure requirements of the ERS business are estimated to be fairly limited.
Today's announcement is consistent with the Company's growth strategy to expand its products and services and complement existing core competencies while also expanding its geographical footprint.
Over the past 15 years, ERS has specialized in the provision of consulting services and solutions to the commercial registry domain. During this time, ERS has become well-known in the registry business having implemented its RegSys solution as well as provided consultancy services to registry operators. Its solutions have also been used to implement systems that manage other legal registers such as intellectual property, securities, licenses and pension schemes.
With over 30 full time employees, ERS will continue to be based in Dublin, Ireland. The existing leadership team has agreed to remain with ERS to continue the delivery and growth of the business.
Origin Merchant Partners acted as exclusive financial advisor to ISC on this transaction.
About ISC
Headquartered in Canada, ISC is the leading provider of registry and information management services for public data and records. Throughout our history we have delivered value to our clients by providing solutions to manage, secure and administer information through our registry and services segments. ISC is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC trade on the Toronto Stock Exchange under the symbol ISV.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities legislation, including management's expectations and certain assumptions with respect to our registry services and products, and, in particular, the expected demand for the registry technology solutions and consultancy services of ERS, the ability to further grow the ERS business, the expectation that the market for registry solutions and services will expand and ISC's expected ability, with the acquisition of ERS, to compete more effectively for new registry business and have strong customer relationships with ERS's customers, our competitive landscape, economic conditions in Canada (in particular, Saskatchewan, Ontario and Quebec) and internationally, real estate market in Saskatchewan, economic impact of energy and resource sectors, transaction volumes, statements regarding the future financial position or results of ISC, customer growth and diversification, dividend expectations, creation of shareholder value, growth opportunities, capital and operating expectations, real gross domestic product, changes that impact our registry services, such as changes in high-value property registrations, motor vehicle sales volume and the number of active business entities, consolidated EBITDA margin, income taxes, our ability to attract and retain skilled staff, the compensation and benefits that will be paid or provided to employees and our level of customer service, as well as goodwill and intangibles are material factors in preparing forward-looking statements.
In addition,the words "may", "will", "would", "should", "could", "expect", "plan", "intend", "trend", "indicate", "anticipate",
"believe", "estimate", "predict", "project", "targets", "strive", "strategy", "continue", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases are intended to identify forward-looking statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Although ISC believes the forward-looking information contained in this release is based upon reasonable assumptions, readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. Many factors and risks could cause our actual results to differ materially from those expressed or implied by forward-looking information including those detailed in ISC's Annual Information Form, dated March 15, 2016, ISC's Consolidated Financial Statements and Notes and Management's Discussion and Analysis for the quarter ended September 30, 2016, as well as other documents filed by ISC with Canadian securities regulators through SEDAR at www.sedar.com from time to time. Investors and others should carefully consider the above-noted factors and risks and other uncertainties and potential events. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
