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.

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.