Information Services Corporation (TSE:ISV) told investors Tuesday that it has bolstered its portfolio of ID verification tools and other cloud-based know-your-customer (KYC) services, thanks to its C$6.8 million asset purchase agreement of the bulk of the assets owned by Securefact Transaction Services.
The deal was arranged for its Services segment, via its wholly-owned subsidiary ESC Corporate Services Ltd, which had been Securefact’s data provider for a number of years.
READ: ISC estimates revenue of up to $135M in 2019 as collateral management services grows
Post the transaction, ISC’s Services segment now boasts an extensive portfolio of KYC solutions and services, including individual verification and business verification technology.
“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,” said Jeff Stusek, CEO of ISC in a statement.
“I’m also very pleased to welcome the Securefact personnel joining us who bring extensive experience in developing and deploying systems to the cloud,” he added.
The company’s services segment supports the needs of financial institutions and legal firms that are looking to outsource work related to credit, due diligence and protection.
The Securefact deal 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.
READ: Information Services again named one of Saskatchewan's best places to work
The acquisition is also not expected to materially impact the company’s 2019 outlook and guidance.
Headquartered in Regina, Saskatchewan, ISC is a provider of registry and information management services for public data and records.
Contact Ellen Kelleher at ellen@proactiveinvestors.com
