Information Services Corporation (ISC) (TSX:ISV) said it has acquired Reamined Systems Inc, a recognized leader in providing property tax management infrastructure and services in the Province of Ontario, for $45.9 million.
ISC noted that the acquired business will become part of its Registry Operations segment. The acquisition is accretive to both earnings per share and free cash flow, it added.
Through a contract with the Province of Ontario, Reamined exclusively provides the platform, data and guidance by which over 440 municipalities in Ontario manage property tax rates and distribution.
"The acquisition of Reamined strongly aligns with our commitment to pursue strategic growth and capitalize on opportunities that add long-term, diversified value to our business,” Shawn Peters, president and CEO of ISC said in a statement.
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“Reamined is integral to Ontario's public sector and has a proven track record of providing trusted, reliable and specialized solutions. This natural extension of our Registry Operations segment expands our role as a trusted service provider to other jurisdictions," he added.
Reamined has provided its services to the Province of Ontario for over 25 years, and on a regular basis, has negotiated and renewed up to five-year agreements with the province. ISC said its own experience in providing critical services on behalf of governments ensures the stability of Reamined's value-added service to the province, adding that it looks forward to continuing and enhancing that relationship.
ISC noted that the acquisition also provides it with a strategic opportunity to expand its presence in the Ontario market with new channels for products, service offerings and customers in the future.
Judy Wong of Reamined commented: "We are thrilled to become a part of an organization that is anchored by the same values that drive us: optimizing operational needs while providing quality solutions to ensure the integrity of data, and secure management of critically important information technology."
ISC paid $41.3 million upon the close of the acquisition, with the $4.6 million balance held in escrow for payout 18 months after close, pending satisfaction of the escrow release conditions. The deal was funded through a combination of $5.9 million in cash and $40 million drawn from ISC's current credit facility.
ISC said that, as a result of the acquisition, it will review its current guidance for 2022 and anticipates providing an update to the market when it reports its earnings for the three and six months ended June 30, 2022.
Headquartered in Canada, ISC is the leading provider of registry and information management services for public data and records.
Contact the author at jon.hopkins@proactiveinvestors.com