Information Services Corporation (ISC) (TSX: ISV) announced that 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 be part of its registry operations segment. The acquisition is accretive to both earnings per share and free cash flow, he added.
Through a contract with the Province of Ontario, Reamined exclusively provides the platform, data and advice through which more than 440 municipalities across Ontario manage property tax rates and distribution.
“The acquisition of Reamined aligns strongly with our commitment to pursue strategic growth and capitalize on opportunities that add long-term, diversified value to our business,” said Shawn Peters, President and CEO of ISC, in a press release.
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“Reamined is an integral part of Ontario’s public sector and has a proven track record of providing reliable, dependable and specialized solutions. This natural extension of our registry operations segment expands our role as a trust service provider to other jurisdictions,” he added.
Reamined has been providing services to the Province of Ontario for over 25 years and has regularly negotiated and renewed agreements of up to five years with the Province. ISC said its own experience in providing essential 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 improving this 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 be part of an organization rooted in the same values that drive us: optimizing business needs while providing quality solutions to ensure data integrity and secure data management. critical information technologies. .”
ISC paid $41.3 million upon closing of the acquisition, with the balance of $4.6 million in escrow to be paid 18 months after closing, pending satisfaction of escrow release conditions. The transaction was financed with a combination of $5.9 million in cash and $40 million drawn from ISC’s current credit facility.
ISC said following the acquisition, it will revise its current guidance for 2022 and expects to provide an update to the market when it releases its results for the three and six months ended June 30, 2022.
Based in Canada, ISC is the leading provider of registry and information management services for public data and records.
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