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Idox acquires Open Objects Software for up to £5.2m

By BFN News | 08:41 AM | Tuesday 26 July, 2016


Idox acquired Open Objects Software for up to £5.2 million. The acquisition is in line with Idox's target of achieving £100m of revenues at sustainable margins in the short to medium term, through a combination of organic growth and acquisitions. Open Objects provides digital services for the public sector specialising in social care and health. Its customers include around 60% of the top tier local authorities in England including Manchester City Council, Kent County Council and the London Borough of Hackney. Open Objects delivers a wide range of managed cloud services and its SAAS solutions provide innovative search and database-driven websites. The acquisition supports the group's strategy of extending its public sector domains and expanding its delivery of digital services across all areas of local government. Idox has a limited existing presence in social care (in document management and workflow) and this acquisition is expected to enable the group to increase significantly its market share in this important domain. Overall, it will enable the group to offer an increased range of value enhancing services to all its customers. The Open Objects business will be fully integrated into Idox and rebranded in line with the group's strong integration track record. The business, which employs 36 staff, will remain based in Cambridge and be managed by its existing team. For its financial year ended 31 March 2016, Open Objects reported revenue of £2.9 million and an operating profit of £0.63 million, with EBITDA of £0.63 million. Net assets were £0.78 million and it is being acquired on a debt free / cash free basis. The acquisition is expected to be earnings enhancing in the first full year of ownership. At 8:41am: (LON:IDOX) Idox Plc share price was -0.25p at 63.75p Story provided by StockMarketWire.com

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