REGINA, July 7, 2015 /CNW/ - Information Services Corporation (TSX:ISV), ("ISC" or the "Company") today announced that it has entered into a Subscription Agreement that will result in ISC acquiring 30 per cent of the issued and outstanding voting, common shares of OneMove Technologies Inc. ("OneMove") on closing for CAD$3.3 million. ISC will use existing cash to finance the investment through a wholly-owned subsidiary.
ISC recognizes OneMove and its econveyance™ software as an industry leading online, 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 conveyancing process. econveyance™ is available in British Columbia, Alberta and most recently, Ontario.
OneMove has continued to experience revenue and earnings growth in 2015 and through this investment in OneMove, ISC expects to participate in a growing, complementary business, consistent with its growth strategy.
ISC will be entitled to proportional board representation, pre-emptive rights to maintain its 30 per cent interest as well as participation in or approval rights for certain fundamental decisions respecting OneMove and its business.
The transaction is expected to close in the third quarter of 2015, subject to standard closing conditions and ISC obtaining clearance for the transaction from the Commissioner of Competition.
Origin Merchant Partners acted as exclusive financial advisor to ISC on this transaction.
ISC is an experienced provider of registry and information services for government, individuals and private sector business. As the exclusive provider of the land titles, surveys, personal property and corporate registries for Saskatchewan, the Company maintains and operates these registries, which are key supporters of economic activity in the province.
Cautionary Note regarding Forward-Looking Information
This news release contains forward-looking within the meaning of applicable Canadian Securities legislation, including statements with respect to the Commissioner of Competition, the closing of this transaction and expected future oppurtunities for growth of OneMove business. All statements other than statements of historical fact are forward-looking statements. 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. Although ISC believes the forward-looking information contained in this release is based upon reasonable assumptions, readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. Many factors and risks could cause our actual results to differ materially from those expressed or implied by forward-looking information including those detailed in ISC's Annual Information Form, dated March 17, 2015, ISC's unaudited condensed Consolidated Financial Statements and Notes and Management's Discussion and Analysis for the quarter ended March 31, 2015 as well as other documents filed by ISC with Canadian securities regulators through SEDAR (www.sedar.com) from time to time. Investors and others should carefully consider the above-noted factors and risks and other uncertainties and potential events. 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.
SOURCE Information Services Corporation