Issuer Direct Corp., a communications and compliance company, has acquired Interwest Transfer Co., a professional registrar and transfer agency, according to a document filed with the Securities and Exchange Commission Tuesday morning.
The purchase price of $3.23 million consists of $1.935 million in cash, 25,235 shares of common stock, and $960,000 to be paid equally in cash over the next three years.
Interwest Transfer is a privately held Salt Lake City, Utah-based firm established in 1961. Currently, the company maintains the stock records for over 1,500 companies.
Morrisville-based Issuer Direct’s acquisition of Interwest Transfer is intended to bolster the company’s transfer agent business, a business where it has found customer retention to be the longest.
“We have known the team at Interwest for several years, and value their passion for having a customer first commitment to each and every customer they serve,” said Brian Balbirnie, Chief Executive Officer of Issuer Direct, in a statement. “We plan to retain certain key employees of ITC, and we look forward to having their talent be a part of the family here at Issuer Direct.”
For the past year, both companies have collaborated under a strategic partnership, whereby Issuer Direct provided annual meeting and proxy management services to select Interest Transfer customers.
The acquisition makes Issuer Direct one of the top 10 stock transfer agencies in North America.
Issuer Direct stock opened at $13.25 Tuesday morning, down 8 cents.