ISC® Enhances Its KYC Solutions With ESC’S Acquisition of Securefact
REGINA, Saskatchewan, Feb. 19, 2019 (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 substantially all of the assets used in the business of Securefact Transaction Services, Inc. (“Securefact”) for CAD$6.8 million by way of an asset purchase agreement.
Having acquired Securefact’s identity and beneficial ownership attestation program, ISC’s Services segment now has the broadest portfolio of KYC solutions and services in Canada, including individual verification, beneficial ownership solution and enhanced business verification.
Jeff Stusek, President & CEO of ISC commented, “This acquisition ensures we maintain market leadership in the industry and we now have KYC products that are fully cloud deployed and integrated with our existing products.” Stusek continued, “I am also very pleased to welcome the Securefact personnel joining us who bring extensive experience in developing and deploying systems to the cloud.”
This acquisition is consistent with ISC’s long-term strategy of acquiring companies with competencies or operations in its industry space and leverages an 8-year history where ESC has been Securefact’s data provider. The Company’s Services segment is positioned to support the growing needs of financial institutions and legal firms to outsource key business processes associated with credit due diligence, protection and default solutions while they focus on their core businesses.
Transaction Highlights
- Provides access to new sources of recurring revenue. The transaction is expected to be mildly dilutive on a reported earnings per share basis in 2019 due to integration costs and amortization but is expected to be accretive on an earnings per share basis in 2020.
- Adds cloud-based KYC technology with products that are fully cloud deployed and integrated with our Services products.
- Maintains market leadership in the industry at the right time, helping Canadian institutions on-board new clients efficiently.
This acquisition is not expected to materially impact the Company’s 2019 outlook and guidance (see news release dated February 4, 2019, available on the Company’s website at company.isc.ca).
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 legislation, including 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 dated March 13, 2018 and ISC’s Unaudited Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the third quarter ended September 30, 2018, copies of which are filed on SEDAR at .
The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Investor Contacts
Jonathan Hackshaw
Director, Investor Relations & Capital Markets
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
