Information Services Corp. (TSE:ISV) shares gained on Monday after the Canadian company said it had completed the acquisition of Dublin, Ireland-based 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.
"This is a strategic acquisition for ISC. The strong reputation and extensive experience of ERS in the registry market complements our own,” said Jeff Stusek, President & CEO of ISC.
"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," he added.
ISC financed the acquisition using a combination of cash and the company's existing debt facility. C$14mln of the purchase price was paid on completion of the transaction and up to 5mln euros in consideration is contingent on the retention of existing leadership and realization of future business.
Key Highlights
- Complementary to our core business and focused on the pursuit of similar customers and opportunities with a customer-centric approach.
- Adds leading technology solution which strengthens our full-service customer value proposition and serves as an additional platform for growth in the registry business.
- Augments registry expertise and talent with global perspective and competencies, particularly in software development, product delivery and business development.
- 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.
- 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.
ISC shares were up 1.5% at C$18.73 on Monday.