REGINA, Saskatchewan., Feb. 15, 2022 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISV) (“ISC” or the “Company”) announced today that its Services segment, through its wholly-owned subsidiary ESC Corporate Services Ltd. (“ESC”), acquired all of the shares of a group of companies operating as UPLevel.
With operations in Ontario and Quebec and the ability to serve customers across Canada and the US, UPLevel provides contact and accounts receivable management, debt collection and Personal Property Security Act (“PPSA”) search and registration services. The acquisition expands ESC’s leading role in the PPSA market and augments its credit life-cycle product suite by adding early and late-stage collections. UPLevel’s impressive client list and ESC’s broad core product offerings will also provide revenue synergy opportunities.
Shawn Peters, President & CEO of ISC, commented, “This acquisition ensures that our Services segment maintains market leadership in the industry and provides our current and new customers with an expanded range of services.” Peters continued, “I am also very pleased to welcome the UPLevel staff to our team. They bring extensive experience in customer touch and collateral management and are a welcome addition to our growing business.”
Tracey Ivanyshyn, President & CEO of UPLevel said, “I am extremely proud of the business we’ve built over the last 50 years and am enthusiastic about the future. Becoming part of ESC will be an exciting new chapter for us and is going to be great for customers and employees.”
Transaction Highlights
- Provides access to new sources of recurring revenue. The transaction is expected to be neutral on a reported earnings per share basis in 2022, due to one-time integration costs and amortization, but is expected to be accretive on an earnings per share basis in 2023 and beyond.
- Augments the credit life-cycle product suite with early and late-stage collection capabilities, enhancing our Recovery Solutions offering.
- Maintains market leadership in the industry at the right time, helping Canadian institutions manage their collateral from onboarding through to professional asset disposition.
This acquisition is consistent with ISC’s long-term strategy of acquiring companies with competencies or operations in its industry space. The Company’s Services segment is well-positioned to support the growing needs of financial institutions and legal firms to outsource key business processes associated with credit due diligence and default solutions while they focus on their core businesses.
This acquisition is not expected to materially impact ISC from a financial perspective and has been completed using cash on hand.
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 Operations, Services and Technology Solutions 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 laws, including, without limitation, statements related to the accretiveness of the acquisition, integration and growth. 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. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to changes in economic, market and business conditions, identification of viable growth opportunities, implementation of our growth strategy, integration, competition and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended December 31, 2020 and ISC’s Unaudited Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the third quarter ended September 30, 2021, copies of which are filed on SEDAR at www.sedar.com.
The forward-looking information in this release is made as of the date hereof, and, except as required under applicable securities laws, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Investor Contacts
Jonathan Hackshaw
Senior Director, Investor Relations & Capital Markets
investor.relations@isc.ca
Toll-Free: 1-855-341-8363 in North America or 1-306-798-1137
