I3 Verticals Inc., through its indirect subsidiary i3-BIS LLC, completed on Feb. 1 the acquisition of substantially all assets of Business Information Systems GP and Business Information Systems Inc., a business based in east Tennessee that provides software and electronic payment solutions.

The acquired entities will fit within i3 Verticals' public sector vertical.

The aggregate purchase price at the closing of the transaction was approximately $87.7 million, consisting of $52.5 million in cash and roughly $35.2 million of class A common shares. The deal also includes contingent consideration of up to $16.0 million, subject to the satisfaction of certain growth metrics over established time periods, according to a news release.

In connection with the acquisition, i3 Verticals granted equity awards under its 2020 acquisition equity incentive plan to certain employees of the acquired entities in accordance with Nasdaq Listing Rule 5635(c)(4). The company granted options to buy a total of 575,000 shares of its class A common stock to 56 employees. The stock options will vest ratably over three years, subject to the employees' continued service to the company through each applicable vesting date.

The stock options have an exercise price equal to $29.30, the closing price per share of i3 Verticals' class A common stock as reported by Nasdaq on Feb. 1, the date of grant.