ISC Enhances its Collateral Management Capabilities With ESC’s Acquisition of Uplevel
15 Februar 2022 - 3:00PM
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 InformationThis 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 HackshawSenior Director, Investor Relations &
Capital Marketsinvestor.relations@isc.caToll-Free: 1-855-341-8363
in North America or 1-306-798-1137
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