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Ideagen PLC (IDEA)

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Monday 14 January, 2019

Ideagen PLC

Acquisition of Scannell Solutions Ltd

RNS Number : 9403M
Ideagen PLC
14 January 2019
 

14 January 2019

 

Ideagen PLC

("Ideagen" "the Company" or "the Group")

 

Acquisition of Scannell Solutions Ltd

 

Ideagen PLC (AIM: IDEA), a leading supplier of Information Management software to highly regulated industries, is pleased to announce the acquisition of the entire issued share capital of Scannell Solutions Ltd ("Scannell") for a total cash consideration of £3.5m (the "Acquisition").

 

Highlights

 

·    Scannell is a Software as a Service (SaaS) company that has developed a functionally rich content enabled Environmental Health, Safety and Quality (EHSQ) platform.

 

·    Scannell, based in the Republic of Ireland, has approximately 100 customers including Intel, Johnson and Johnson, BT, Heineken and Coca Cola.

 

·    This Acquisition supports the Group's product roadmap providing the technology and content to accelerate our EHSQ strategy.

 

·    On a current run rate Scannell is generating approximately €1m in revenues of which €0.7m is recurring and is breakeven.

 

·    The Acquisition is expected to be earnings neutral in this financial year and in the first full year of ownership will contribute €0.3m additional EBITDA following the realisation of identified synergies.

  

Consideration for the Acquisition

 

The total consideration payable of £3.5 million is in cash and will be paid as follows:

·    £3.0m is payable on completion;

·    £0.5m is deferred for 12 months.

 

The consideration will be funded from the Group's existing cash reserves and debt facility.

 

David Hornsby, Executive Chairman of Ideagen, commented; "Scannell is a valuable addition to Ideagen and is in line with our strategy of acquiring GRC businesses that have strong IP and recurring revenues. EHSQ is a fast growing market and the acquisition will significantly enhance our product and market position."

 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

 

Enquiries:

Ideagen plc

01629 699100

David Hornsby, Executive Chairman

Ben Dorks, Chief Executive


 

Graeme Spenceley, Finance Director


 


 


 

finnCap Limited

020 7220 0500

Henrik Persson/James Thompson (Nomad)


 

Alice Lane (ECM)

 

 


 

  

  

 


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