SAN ANTONIO, Dec. 16, 2020 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq: USIO), an integrated electronic payment solutions provider, today announced that the acquisition of the assets of Information Management Solutions, LLC (IMS) was closed on December 15, 2020 through Usio’s wholly owned subsidiary PDS Acquisition Corp. 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.

We expect the acquisition to add over $13 million in annual revenue and, after integration, approximately $1.0 million of annual Adjusted EBITDA to Usio. IMS will also be accretive to earnings.

Louis Hoch, President and Chief Executive Officer of Usio, said, “We are pleased to have quickly closed this acquisition and we are extremely excited to immediately begin integrating IMS’ operations. The acquisition of IMS is consistent with our strategic plans to accelerate revenue growth. The acquisition is immediately accretive and synergistic. Through the integration of our electronic payments technology with IMS’ sophisticated Electronic Bill Presentment solution we re-enter the EBPP industry, an industry where we were once a leader and continue to enjoy numerous relationships. This combination furthers our strategy to leverage our leading technology to further penetrate the electronic payments industry and to strengthen our multi-channel distribution network.”

Usio has already launched an initiative to develop a new service: Electronic Bill Presentment and Payment as a Service. Through this new service, IMS customers will have the ability to effectively add secure payments to their existing website, effectively enabling the clients’ customers to pay paper or electronic invoices they currently receive through IMS. Customers can have their bill delivered in any manner and will have a wealth of payment options from which to choose, including ACH (eCheck), Debit/Credit Card and Text2Pay. Usio makes the process very simple and does the heavy lifting, providing branded and secure hosted payment pages to clients in short order.

Hoch continued, “The opportunity to introduce Electronic Bill Presentment and Payment as a Service will quickly enable customers to collect their money faster, simplify recordkeeping, and save money.”

Usio plans to rebrand the IMS offering to Usio Output Solutions, Inc. The Usio wholly owned subsidiary will create a new revenue segment for the company.

All of the IMS employees will be joining the Usio team except for the two primary shareholders, who are retiring but have entered into transition agreements with Usio. Usio is pleased to announce that Mr. Silas “Sy” Green will have P&L responsibility for the business unit and will hold the title of Senior Vice President, Usio Output Solutions. Sy has a breadth of talent, has been with IMS for over 20 years and has been instrumental in the success of the company throughout his tenure.

Usio acquired IMS with a combination of cash and warrants. The total cash consideration was $5.9 million. The Company issued warrants to the shareholders of IMS with a strike price of $4.23 and a term of five years after vesting. The warrants will vest in three annual instalments of 315,200 each on the first, second, and third anniversary of the issue date.

Conference Call

In conjunction with this announcement, Usio will be hosting a conference call for the investor community at 4:30 pm Eastern time. To access the conference call, interested parties within the U.S. should call 1-844-883-3890. International callers should call +1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s website at www.usio.com/invest.

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