MORRISVILLE — Issuer Direct Corp. agreed to acquire a Canadian newswire distribution company for $1.2 million in a deal announced Monday that expands its press release distribution capabilities and client base.
Morrisville-based Issuer Direct said that the deal for Calgary-based FSCWire consists of $960,000 in cash, $60,000 in Issuer Direct stock and $180,000 in cash held in escrow for 18 months.
FSCWire, which has 300 customers, specializes in press release distribution for public and private companies, primarily in Canada.
“Our industry has seen significant consolidation since we entered the newswire business with our AccessWire acquisition in 2014, and this acquisition was a natural step for us,” said Issuer Direct CEO Brian Balbirnie in a statement.
Issue Direct’s shares rose 17 cents, or 0.85 percent, to $20.25 in Monday afternoon trading.
Fred Gautreau, the president of FSCwire, will remain with Issue Direct as director of corporate development.
Issuer Direct, which provides communications and compliance services to companies, has made it a goal to have 2,500 customers by the end of the year. It currently has more than 2,000.
The company acquired Interwest Transfer Co., a professional registrar and transfer agency, in October 2017 for $3.23 million.
This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism