May 23Liked by Fairway Research

Additional thoughts..

I really got a lot out of this analysis. You did a great job of illuminating the financial mechanics of each operation. I have previously spent a lot of time researching this company but you helped me increase my ability to process all the data.

When I look at the financials now it's clear where all the pieces fit and to trace each dollar of revenue, debt, etc as well as how the acquisitions are unfolding.

"While most acquisitions done by ISC made sense on paper, the returns from acquisitions for ISC have been average at best."

That's the crux right there

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May 21·edited May 21Liked by Fairway Research

Some thoughts...

1. The changes in the Ontario Business Registry are having a negative impact on ISV. (ISV has long been aware of these changes and has mitigated the effects by creating more services for their clients)


2. They have a 200M shelf prospectus in effect, providing them options for larger acquisitions.

3. The contrast with this company and Dye & Durham provides a lot of insight into how to and how not to run a company. The backstory of ISV and Dye & Durham/Matthew Proud is interesting as well, ISV at one time owned 30% of OneMove, which acquired dye & durham and operated it as a subsidiary. ISV acquired ESC which was part of Dye & Durham, ISV sold its 30% share of OneMove to its shareholders..

(Information Services Corporation (TSX: ISV) has sold its 30% interest in Dye & Durham Corporation (D&D) to the other shareholders of D&D for $25 million in cash.

On September 2, 2015, ISC completed a $3.3 million investment in OneMove Technologies Inc., acquiring 30% of the issued and outstanding voting common shares.

Matthew Proud and brother Tyler Proud, through Plantro Ltd., took OneMove Technologies Inc. in 2013.)

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Mar 28Liked by Fairway Research

Yes, I agree with you. Do you see Teranet is their biggest competitor? Also, if the company somehow went bankrupt in 10 years, what do you think that could have caused it?

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Mar 27Liked by Fairway Research

Thank you for this great write-up, it is amazing. I was wondering what your thoughts are on the Share-Based compensation plan. When you combine the Performance Share units, Share appreciation rights, deferred share units and stock options you reach around 9,3% of the current market cap. Do you consider this positive as management will get (and basically indirectly already have) skin in the game and will be incentivised or is it simply dilutive to shareholders and considered negative?

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May 21·edited May 21

“Late in the fourth quarter of 2022, ISC, through its wholly owned subsidiary, Enterprise Registry Solutions Limited (“ERS”) commenced the implementation of integrated registry platforms for the Government of Cyprus (“Cyprus”), launched the States of Guernsey online Register of Charities and Non-Profit Organisations (“Guernsey”), and completed the development of corporate registry technology for Bonaire, Sint-Eustatius and Saba — all of which run on the RegSys solution.

The Cyprus project will deploy the RegSys platform to a complex and significant government department, the Department of Registrar of Companies and Intellectual Property, and is expected to revolutionize registry operations for the Government of Cyprus, bringing significant productivity increases, regulatory compliance and streamlined user experiences for individuals and companies who interact with the DRCIP registries. The total value of the contract (in partnership with another firm) is €10 million and ISC’s portion of this contract over the life of the project is €5.7 million (approximately $8.4 million).

In late 2022, the States of Guernsey launched the first phase of the online Register of Charities and Non-Profit Organisations to the public, operating on the RegSys solution, and transforming the way charities interact with the States of Guernsey. This first phase of the project is an important milestone for Guernsey, as RegSys will be used by Guernsey to demonstrate compliance during the imminent MONEYVAL evaluation — an examination of measures taken in the financial, regulatory and criminal justice sectors to combat money laundering and terrorist financing in the European Union.

The second phase of the project began in the first quarter of 2023, bringing the Corporate, Beneficial Ownership and Intellectual Property Registers onto the new RegSys platform to provide an integrated solution for the States of Guernsey. The total value of the two-phased project (including implementation and support and maintenance) is expected to be £7.7 million (approximately $12.9 million).”


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Thank you for the well written/researched article. I have been an investor in ISV for 1 year. It will be very interesting to see things unfold, I see a lot of potential in this company and managements vision.

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Congrats, great work! Do you have any extra information about the January 2023 acquisition of Regulis SA in Luxembourg? I did not say any price information in the news release, I guess small acquistion

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Excellent stuff! How much did your DCF factor in as the cash outflow relates to the MSA renewal?

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