REGINA, Saskatchewan, Oct. 05, 2017 (GLOBE NEWSWIRE) — Information Services Corporation (TSX:ISV) (“ISC” or the “Company”) today announced the sale of its 30 per cent stake in Dye & Durham Corporation (“D&D”) to the other shareholders of D&D for $25.0 million in cash.
- DELIVERS VALUE – An $18.0 million gain on total capital deployed of $7.0 million.
- PROVIDES CAPITAL – The addition of $25.0 million in cash further strengthens ISC’s balance sheet to support corporate objectives and priorities.
In September 2015, ISC announced its investment of $3.3 million in D&D (or OneMove Technologies Inc. as it was known at the time) for a 30 per cent stake. Over the course of a two-year period, ISC invested a further $3.7 million to support D&D’s growth activities and to maintain its 30 per cent shareholding.
Jeff Stusek, President and CEO commented, “ISC has been very pleased with its investment in D&D. However, the time is right to divest and to focus on our other growth objectives and core business, deploying our capital resources at the appropriate time.” Stusek continued, “We would like to congratulate D&D on its growth during our time as a shareholder and wish Matthew Proud, CEO of D&D, and his team continued success.”
Origin Merchant Securities Inc. acted as exclusive financial advisor to ISC on this transaction.
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 and services 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 includes certain forward-looking information within the meaning of applicable Canadian securities legislation including, without limitation, statements regarding corporate strategy. 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, financing, 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 14, 2017 and ISC’s Unaudited Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the second quarter ended June 30, 2017, copies of which are filed on SEDAR at www.sedar.com.
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.
Director, Investor Relations & Corporate Communications
Manager, Investor Relations
Information Services Corporation
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