REGINA, SASKATCHEWAN--(Marketwired - Oct. 1, 2015) - Information Services Corporation (TSX:ISV), ("ISC" or the "Company") today announced that further to the July 22, 2015 news release, it has successfully completed the acquisition of all of issued and outstanding common shares of ESC Corporate Services Ltd. ("ESC").
"ESC is a growing, complementary business that expands our portfolio of services and aligns with our core registry business," said Jeff Stusek, President & CEO. "Through this acquisition, we have expanded geographically and added a successful company that will enable us to diversify our revenue."
The acquisition is expected to be immediately financially accretive to ISC's earnings per share in 2015. The Company completed the transaction through a wholly owned subsidiary using a combination of cash and debt with CAD$21 million of the purchase price paid on closing of the transaction and up to CAD$7 million payable in the form of a performance-based, 12-month earn out.
As a wholly owned subsidiary of ISC, ESC will continue to provide law firms, corporations, financial services institutions and others with services and online custom solutions to fulfil a wide variety of their clients' public records due diligence, filings and corporate supply requirements in connection with public business registries in Canada and certain other countries.
Transaction Highlights
- Sound Business: ESC has attractive gross margins, free cash flow, low capital expenditures and a strong market position with major accounts. For the year ended December 31, 2014, ESC realized revenue of over CAD$11 million.
- Growth Opportunities: The western Canadian market remains an opportunity for ESC's business. ESC also continues to capitalize on business process outsourcing trends driven by an increase in regulatory and compliance mandates, particularly in the financial services sector, and an overall drive for cost efficiencies within its client base.
- Solid Client Base: ESC's bilingual, multi-disciplinary customer service teams in Toronto and Montreal deliver business solutions to legal and financial professionals, corporations and financial institutions across Canada who require national solutions through the use of public records.
ISC sought and obtained clearance for the transaction from the Commissioner of Competition.
For more information about ESC, please visit ESC's website at www.eservicecorp.ca.
Conference Call
An investor conference call will be held on Thursday, October 1, 2015, at 11 a.m. Eastern Time (9 a.m. Saskatchewan Time) to discuss this acquisition.
Participants may join the call by dialing toll-free 1-866-225-0198 or 1-416-340-2216 for calls outside North America. Simultaneously, an audio webcast of the conference call will also be available at the following link http://www.gowebcasting.com/6949. Media are invited to attend on a listen-only basis.
The webcast will be available for replay 24 hours after the event until 11:59 p.m. EST on October 2, 2015 at http://isc.mwnewsroom.com/Events.
About ISC
ISC is an experienced provider of registry and information services for government, individuals and private sector business. As the exclusive provider of the land titles, surveys, personal property and corporate registries for Saskatchewan, the Company maintains and operates these registries, which are key supporters of economic activity in the province.
Cautionary Note regarding Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable Canadian Securities legislation, including statements with respect to the expectation that the transaction will be immediately accretive to the Company's earnings per share in 2015, expected future financial performance of the ESC business and expected future opportunities for growth of ESC's business. All statements other than statements of historical fact are 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 17, 2015, ISC's unaudited condensed Consolidated Financial Statements and Notes and Management's Discussion and Analysis for the quarter ended June 30, 2015 as well as other documents filed by ISC with Canadian securities regulators through SEDAR (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.