Information Services Corporation revealed that its services segment, through its wholly-owned subsidiary ESC Corporate Services Ltd, acquired all of the shares of a group of companies operating as UPLevel.
The Saskatchewan-based firm noted that UPLevel has operations in Ontario and Quebec and can serve customers across Canada and the US, providing contact and accounts receivable management, debt collection and Personal Property Security Act (PPSA) search and registration services.
It said 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 client list and ESC's broad core product offerings will also provide revenue synergy opportunities, the company added.
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"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,” ISC (TSX:ISV) president and CEO Shawn Peters said in a statement.
"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,” Peters added.
ISC (TSX:ISV) said the transaction provides it with access to new sources of recurring revenue. While it is expected to be neutral on a reported earnings per share basis in 2022, due to one-time integration costs and amortization, the company said it is expected to be accretive on an earnings per share basis in 2023 and beyond.
Additionally, it said the deal augments the credit life-cycle product suite with early and late-stage collection capabilities, enhancing its Recovery Solutions offering.
It will also help it maintain market leadership in the industry at the right time, helping Canadian institutions manage their collateral from onboarding through to professional asset disposition.
"I am extremely proud of the business we've built over the last 50 years and am enthusiastic about the future,” UPLevel president and CEO Tracey Ivanyshyn said.
“Becoming part of ESC will be an exciting new chapter for us and is going to be great for customers and employees.”
ISC said the acquisition is consistent with its long-term strategy of acquiring companies with competencies or operations in its industry space. It said its 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.
The transaction is not expected to materially impact the company from a financial perspective and has been completed using cash on hand, ISC added.
Information Services Corporation provides registry and information management services for public data and records and is focused on sustaining the core registry business while pursuing new growth opportunities.
The company has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services and Technology Solutions.
Contact the author at stephen.gunnion@proactiveinvestors.com