Prospective Accretive Acquisition Expected to Add New Utilities, Telecom and Financial Institution Customers as Well as Proprietary Document Composition Technology, Including Electronic Bill Presentment, to Support Key Growth Initiatives
SAN ANTONIO, Dec. 08, 2020 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq: USIO), an integrated electronic payment solutions provider, today announced that it has entered into a non-binding Letter of Intent (LOI) to acquire the assets of Information Management Solutions, LLC (IMS). IMS is an established provider of electronic bill presentment, document composition, document decomposition and printing and mailing services serving hundreds of customers representing a wide range of industry verticals, including utilities and financial institutions.
Louis Hoch, President and Chief Executive Officer of Usio, said, “We are pleased to announce that we have entered into a non-binding LOI to acquire IMS. We expect that the acquisition of IMS will not only be immediately accretive, but when and if closed, will also be highly synergistic, creating opportunities to cross and up-sell Usio’s core Payment Facilitation, Prepaid and ACH services to the IMS customer base through the integration of Usio’s proprietary technology, including bill payment. Furthermore, it will provide Usio a means to re-enter the EBPP industry, one which we were the dominant leader as Billserv, from 1998-2003. In addition, IMS broadens the scope of services currently being offered to the verticals currently targeted and served by Usio, as there is significant overlap that we believe will lead to a clear and measurable impact in short order.”
Kelly Dowe, Co-founder of IMS, commented, “IMS is very pleased to announce our prospective acquisition by Usio. For the last twenty-four years, we’ve been providing our customers with innovative, first-class electronic bill presentment, document warehousing and large-scale print and mail solutions. Having known Mr. Hoch and Usio for many years, it is abundantly clear both companies share the same vision of providing world-class solutions and unparalleled customer support.”
IMS has agreed to work with Usio on an exclusive basis until the deal is consummated or terminated. Details of the transaction are not being disclosed at this time. As is customary, the transaction is contingent on the successful outcome of due diligence, IMS’ completion of an audit and the payment of a purchase price from Usio’s existing cash and the issuance of a yet to be determined number of Usio warrants to the shareholders of IMS.
About IMS
Information Management Solutions (IMS), based in San Antonio, Texas, since 1995, offers electronic bill presentment, document composition, digital document warehousing, printing and mailing services for both variable and static print content. IMS’s services include eBill and statement redesign, data archive and hosting, marketing and postage guidance. A broad array of services are offered to a wide spectrum of diverse sectors including utilities, telecommunications, financial institutions, municipal governments, and many more.
Website: www.totalims.com
About Usio, Inc.
Usio, Inc. (Nasdaq: USIO), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas, and Franklin, Tennessee, just outside of Nashville.
Websites: www.usio.com, www.singularpayments.com, www.payfacinabox.com, www.akimbocard.com, and www.ficentive.com. Find us on Facebook® and Twitter.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "intend," "look forward," "anticipate," "should,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including the risk that the IMS acquisition may not be consummated, that the synergies from the IMS acquisition may not materialize, that the IMS acquisition will consume time and energy by management, management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, risks related to the COVID-19 pandemic and its effect on the economy, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2019. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.
Contact:
Joe Hassett, Investor Relations
joeh@gregoryfca.com
610-228-2110