Australian Funds Compete with Canadian Pensions for Saskatchewan’s Info Services Corp.
Two of Australia’s prominent institutional investors are making moves in a competitive bidding process for Canada’s Information Services Corporation (ISC). This Saskatoon-based entity is valued at approximately $1 billion and serves as a crucial player in real estate data services in Canada.
Australian Investors in the ISC Bidding War
Brisbane’s Queensland Investment Corporation (QIC) and Sydney’s Macquarie Asset Management are in discussions to acquire ISC. Notably, Melbourne-based Plenary Group is collaborating with the Caisse de dépôt et placement du Québec (CDPQ) on a potential bid as well.
Canadian Competition
The Ontario Municipal Employees Retirement System (OMERS) has also entered the fray. OMERS previously acquired a similar company, Teranet, for $2 billion in 2008. Teranet manages land registries in Ontario and Manitoba, whereas ISC oversees property registrations for Saskatchewan.
Background of Information Services Corporation
ISC was established in 2000 as a Crown corporation and transitioned to public status on the Toronto Stock Exchange in 2013. Currently, its core business model generates reliable cash flow through real estate transaction fees, making it attractive for institutional investors. The largest shareholder, the Crown Investments Corporation of Saskatchewan (CIC), holds a 29.3 percent stake and supports a strategic review launched last fall.
Strategic Review and Valuation
RBC Capital Markets and Stikeman Elliott LLP are handling ISC’s strategic review, urging bidders to offer at least $60 per share, valuing the company around $1.11 billion. As of the last trading session, ISC shares were priced at $44.13, indicating a market capitalization of $825 million.
- Current Price: $44.13 per share
- Market Capitalization: $825 million
- Target Offer Price: $60 per share (approx. $1.11 billion total valuation)
ISC’s Future and Expansion Plans
In 2023, ISC announced a strategy aimed at doubling its business size by 2028. They forecasted revenues for the current year to be between $273 million and $283 million, anticipating adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $100 million to $107 million.
The Role of Investment Firms
QIC manages assets worth approximately C$126 billion, while Macquarie oversees around C$910 billion. OMERS manages $141 billion for Ontario workers, and CDPQ manages $496 billion in client assets.
A successful bid for ISC by any of these investors could signal a significant commitment to infrastructure investment in Canada, reflecting a broader trend of growing international interest in Canadian projects.
