Information Services Corp T.ISV

Saskatchewan registries extension

[Possibleidiot01]

This does change the investment potential for me .
They're now paying $30 million a year  for something they now don't pay for ; on the other hand they get immediate price increases.
More importantly , their leverage is now up to 4 xEBITDA.

"Rapid deleveraging towards long-term net leverage target of 2.0x – 2.5x." was defined as 2 to 3 years.
My reasoning is the debt is going to limit M+A for some time unless they find a compelling purchase and use shares as part of the price.

[Torontojay]

It is on the higher end of the debt to ebitda ratio but I'm encouraged by the following:  1) they generate $40m in fcf (prior to deal) which can significantly reduce their leverage in a short period of time.  2) most of that incremental ebitda will flow towards fcf and take it well north of $50m per annum.  3) earnings stability given the long term contract 

[PrivilegedP5000]

There should be an immediate uplift in the valuation multiple because any uncertainty about the future of their core operation is now gone. Should be worth at least 10 to 15 times EBITDA not unlike any infrastructure play. The other thing if note which is a huge positive is the population growth in Saskatchewan- this year will likely be a record increase - that feeds right into the core of their