OneMove Technologies Inc, a Vancouver provider of online conveyance services facilitating the property transfer process, agreed in December 2014 to be bought by Information Services Corp (TSX: ISV). The deal is valued at $10 million, subject to working capital adjustments. OneMove is a portfolio company of Bahamas-based private equity firm Plantro, which took it private in June 2013 at a valuation of $5.3 million. Headquartered in Regina, Information Services Corp is a land registry and information services business.
PRESS RELEASE
Information Services Corporation to acquire econveyance™ online solution
REGINA, Dec. 22, 2014 /CNW/ – Information Services Corporation (TSX:ISV), (“ISC” or “the Company”) is pleased to announce that it has entered into an Asset Purchase Agreement with OneMove Technologies Inc., OneMove Online Systems Inc. and related parties, (collectively “OneMove”) to acquire econveyance™, a proprietary online conveyancing solution, and related operating assets of the OneMove business. ISC will complete the transaction through a wholly-owned subsidiary using existing cash to finance the acquisition. The transaction is valued at C$10.0 million, subject to working capital adjustments.
econveyance™ is a subscription based solution that offers a secure and efficient means of managing real property transactions. It simplifies and expedites the process of buying and selling real property by connecting legal professionals, lenders and insurers throughout the property transfer process. econveyance™ is available in British Columbia, Alberta and most recently, Ontario.
“This is ISC’s first acquisition since our public offering and expands our business outside the province of Saskatchewan. This product allows ISC to extend its reach across the value chain while leveraging our knowledge of the land transfer and registration business to support the future growth of econveyance™”, said Jeff Stusek, ISC’s President and Chief Executive Officer. “We are excited about the prospect of bringing the econveyance™ solution to Saskatchewan and believe this transaction positions us for other synergistic opportunities that may be available in the future.”
“We achieved great success in restructuring OneMove,” said Matthew Proud, OneMove’s Chief Executive Officer. “Since taking the Company private in 2013 and stepping in as CEO, we have managed to increase revenues through sales, and we are now profitable for the first time since the Company’s inception. Additionally, we are encouraged by the recent expansion of econveyance™ into Ontario, offering an alternative to the market.”
Matthew Proud and his brother, Tyler Proud successfully acquired econveyance™ through their company, Plantro Ltd., after a takeover of OneMove Technologies in 2013, which was listed on the TSX Venture at the time.
The transaction is expected to close towards the end of January 2015 and is subject to a number of closing conditions. They include obtaining the consents to assignment of key contracts, the transfer of OneMove employees, that no material adverse change in any of the purchased assets or the OneMove business occurs, as well as certain other customary conditions.
Transaction Highlights
Today’s announcement is consistent with ISC’s strategy to expand its products and services and complement existing core competencies while also expanding its geographical footprint.
The transaction enhances ISC’s growth profile with the addition of a new revenue stream, which is consistent with ISC’s commitment to shareholders to identify and execute on growth opportunities in other markets, including BC, Alberta and Ontario.
ISC estimates the transaction to be accretive in the near-term. By December 2015, ISC expects marginal accretion on an earnings and cash flow basis relative to consensus estimates and the successful expansion of the econveyance™ customer base.
econveyance’s™ position in the British Columbia market and expansion into other provinces will allow ISC to leverage econveyance™ business relationships as ISC continues to explore new growth opportunities in those markets that align with its core competencies.
The transaction adds strong customer support and a technical team of developers currently working with econveyance™.
ISC expects that the econveyance™ product will be launched in Saskatchewan in 2015, thereby leveraging ISC’s relationships with the legal community and its expertise in land registration and real property transfer processes.
The representations, warranties and indemnities provided by OneMove in the Asset Purchase Agreement are subject to certain time limitations and maximum indemnity limits. As this is an agreement to purchase business assets, Matthew Proud will remain with his existing company upon closing.
Origin Merchant Partners acted as exclusive financial advisor to ISC on this transaction.
About ISC
ISC is a provider of registry and information services to the Province of Saskatchewan. The Company is the exclusive provider of the Land Titles Registry, Land Surveys Directory, Personal Property Registry and Corporate Registry in Saskatchewan, which are key supporters of economic activity in the province.
SOURCE Information Services Corporation
For further information: All general, market or media inquiries with respect to this transaction are to be sent to Information Services Corporation, as follows: Investor Relations Contact: Jonathan Hackshaw, Director, Investor Relations & Corporate Communications, Information Services Corporation, 306-798-2136, investor.relations@isc.ca; Media Contact: Pamela Keck, Manager, Investor Relations, Information Services Corporation, 306-798-1136, investor.relations@isc.ca
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