ISC Data Company Attracts Four Preliminary Takeover Offers

Regina-based data provider Information Services Corp. (ISC-T) has emerged as a target for multiple potential buyers, including prominent pension fund managers, following a strategic review initiated this fall and an activist investor campaign earlier in the year. As one of Canada’s largest property registries, ISC has attracted attention for its steady cash flows and long-term contracts, making it a compelling opportunity for institutional investors.

According to sources familiar with the process, ISC received non-binding takeover offers from four bidders last week. The offers, which value the Toronto Stock Exchange-listed company at up to $58 per share—roughly $1 billion—were part of a process launched by ISC’s board in early September. The Globe and Mail has chosen not to name these sources because they are not authorized to speak on behalf of the companies involved.

At the close of trading last Friday, ISC’s market capitalization stood at $774 million, based on a share price of $41.40. The stock has risen 57 percent so far this year, highlighting growing investor confidence in the company.

High-Profile Bidders

The bids reportedly come from the Investment Management Corporation of Ontario (IMCO), Northleaf Capital Partners, the Ontario Municipal Employees Retirement System (OMERS), and Australian fund manager Queensland Investment Corporation (QIC). All four bidders have significant experience in infrastructure and long-term investment projects, aligning with ISC’s stable revenue model.

Sources indicate that ISC’s board and advisers are expected to decide in the coming months whether to negotiate with any of the bidders. Representatives from ISC and OMERS declined to comment on the strategic review, while IMCO, Northleaf, and QIC could not be reached for comment over the weekend.

Read More: UK and US Strike $42 Billion Tech Deal During Trump Visit

A Digital Infrastructure Leader

ISC operates as a digital infrastructure company, generating reliable revenue through fees on real estate transactions. This model is beautiful for pension funds and other institutional investors seeking consistent returns over time. The company holds long-term contracts, including property registration services in Saskatchewan running until 2053, and a nine-year contract with the Ontario government to provide digital environmental property information, signed in August of this year.

The Saskatchewan government, which has a stake in ISC through Crown Investments Corporation of Saskatchewan (CIC), the company’s largest shareholder with 29.3 percent ownership, has emphasized the importance of maintaining ISC’s head office in Regina. The government also seeks to ensure that the company’s growth continues to benefit the province, a factor that is expected to influence the selection of a buyer.

OMERS and Teranet: Potential Synergies and Challenges

Among potential buyers, Toronto-based OMERS already owns Teranet, a company that offers similar land registry services under long-term contracts in Ontario and Manitoba. Teranet was acquired by OMERS in 2008 for $2 billion. Sources suggest there may be concerns about potential job cuts at ISC if OMERS proceeds with a merger of ISC’s operations with Teranet.

Expansion Beyond Canadian Real Estate

ISC has diversified beyond its origins in the property registry. Notably, the company won a contract in 2017 to manage the Irish Charities Regulator, overseeing the registration and regulation of charities operating in Ireland. This expansion demonstrates ISC’s capacity to scale its digital infrastructure and provide specialized services internationally.

Activist Investor Influence

The strategic review followed an activist campaign by entrepreneur Matthew Proud’s holding company, Plantro Ltd., launched last spring. Plantro’s campaign included an offer to acquire up to 15 percent of ISC, which the board called “abusive and coercive.” Proud, former CEO of Dye & Durham Ltd., remains a significant shareholder in ISC and continues to be involved in the strategic review. However, he has not submitted an offer to the company.

ISC previously held a 30-percent stake in Dye & Durham but sold it in 2017 after Dye & Durham acquired a competing business, OnCorp Direct Inc. Proud’s activism reflects a broader trend of shareholder engagement in governance, with ISC now navigating these pressures while attracting institutional interest.

Advisory Teams and Strategic Oversight

The ISC board is being advised by RBC Capital Markets and law firm Stikeman Elliott LLP, while CIC is working with CIBC Capital Markets to evaluate the strategic review. ISC went public in 2013 and currently employs 560 staff. In the previous fiscal year, ISC reported net income of $20.2 million on revenues of $247.4 million, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $90.3 million.

Canada’s Booming Private Equity Market

The interest in ISC coincides with an accelerated pace of private equity activity in Canada. Institutional and individual investors have committed billions to PE funds, resulting in record investment levels. In the first nine months of this year, private equity funds deployed $56.5 billion across 483 domestic transactions—the strongest period on record, according to the Canadian Venture Capital and Private Equity Association. By comparison, similar periods from 2017 to 2019 averaged $8 billion to $25 billion across roughly 400 to 450 deals, signaling a significant post-pandemic expansion in the market.

Strategic Value for Long-Term Investors

ISC’s business model aligns with the objectives of pension funds and other long-term investors seeking steady returns from predictable revenue streams. Its digital services infrastructure, long-term government contracts, and diversified international operations make it an attractive acquisition target. The company’s growth trajectory and stable cash flow model also reinforce its strategic value amid rising competition in the Canadian digital infrastructure sector.

Frequently Asked Questions

What is Information Services Corp. (ISC-T)?

ISC-T is a Regina-based digital infrastructure company that provides property registration and other data services in Canada and internationally.

Why is ISC-T attracting takeover offers?

The company’s stable cash flow, long-term government contracts, and digital infrastructure make it appealing to institutional investors and pension funds.

Who are the potential buyers of ISC-T?

Reported bidders include IMCO, Northleaf Capital Partners, OMERS, and Australia’s Queensland Investment Corporation (QIC).

How much are the takeover offers for ISC-T worth?

Non-binding bids value the company at up to $58 per share, roughly $1 billion.

What role does the Saskatchewan government play in ISC-T?

Through Crown Investments Corporation of Saskatchewan (CIC), the government holds a 29.3% stake and aims to maintain ISC’s Regina headquarters.

How has ISC-T expanded beyond property registration?

The company manages digital services internationally, including the Irish Charities Regulator, demonstrating its global digital infrastructure capabilities.

What is the next step in ISC-T’s strategic review?

The board and advisers will decide whether to enter negotiations with any bidders in the coming months, taking into account shareholder and government interests.

Conclusion

Information Services Corp. (ISC-T) stands at a pivotal moment, attracting multiple takeover offers from prominent institutional investors amid a strategic review. With stable cash flows, long-term government contracts, and a growing international footprint, the company presents a compelling opportunity for buyers seeking reliable, long-term returns. As the board evaluates potential bidders, decisions will weigh shareholder interests, government priorities, and ISC’s ongoing growth.