i3 Verticals Completes Public Sector Acquisition; Upsizes Credit Facility

i3 Verticals, Inc. (Nasdaq: IIIV) (the “Company”) announced today the acquisition, effective October 1, 2022, of a leading provider of enterprise software solutions for the motor carrier and motor vehicle markets in the U.S. States and Canada. The total consideration paid for the acquisition was approximately $85 million. The Company currently expects the acquisition to be accretive to pro forma adjusted diluted earnings per share. The Company will discuss this acquisition in further detail during its upcoming fourth quarter and year-end earnings call in November.

Greg Daily, CEO of i3 Verticals, commented, “This acquisition further strengthens our competitive position in the Public Sector vertical. Our second largest acquisition to date, the acquired business fits particularly well with Business Information Systems (BIS), which we acquired in February of 2021. Both companies have products for transportation departments at the state level, but their products are complementary and do not overlap, so we see many opportunities to expand the addressable market and cross-sell within existing customers. This marks the fourth acquisition we have made that focuses on state-level customers. The acquired business also offers a greater geographic reach, with customers in 18 U.S. States and 4 Canadian Provinces. We also anticipate qualifying for more RFP’s through a broader product line. All of our teams are excited to work together on meaningful opportunities.”

In connection with the acquisition, the Company expanded its revolving credit facility to $375 million from $275 million, with a bank group led by Bank of America. The Company currently expects its total leverage ratio to remain close to 4.0x as of September 30, 2022, the end of its fourth fiscal quarter of 2022. Assuming no further significant acquisition activity, the Company also expects its total leverage ratio to remain close to 4.0x at December 31, 2022, the end of its first fiscal quarter of 2023.

About i3 Verticals
The Company delivers seamless integrated payment and software solutions to customers and end users in strategic vertical markets. Building on its sophisticated and diverse platform of software solutions, the Company creates and acquires software products to serve the specific needs of public and private organizations in its strategic verticals that include Public Sector, Healthcare and Education, among others.