Ideagen Share Discussion Threads

[nil desperandum] 30/4/2018 10:54

It was indeed. It was fascinating to get a good insight into how the sales process is managed so well and why they can be so accurate with forecasts - very impressive indeed! I always thought that David was impressive, but to see more of the team and the quality behind David just increases my confidence.

[melody9999] 30/4/2018 10:35

Attended the IDEA presentation at Mello which I thought was excellent.

[davidosh] 25/4/2018 01:01

Just a reminder that Ideagen will be presenting at our huge Mello2018 event in Derby this Friday 27th April and exhibiting on the 26th as well so all shareholders and potential investors are welcome to attend

IDEA have presented at numerous Mello events before and we are very pleased to welcome them back as one of the most successful companies so this is an ideal opportunity to meet the management and hear about their strategy.

Do come and join us at this quality two day event and there will be 45 other companies to meet plus some fabulous keynote speakers

[rivaldo] 20/4/2018 12:00

The IC have just today published their annual review of the AIM 100, their guide to the junior market.

IDEA are a Buy:



"88. Ideagen

Research company Gartner says the governance, risk and compliance market was worth around $4.4bn in 2016 and is growing by 13 per cent each year. A good thing, then, that ‘GRC’ represented over 90 per cent of Ideagen’s (IDEA) sales for the half year to October 2017.

The information management software provider has made various acquisitions over the past 18 months or so. In April 2018, it bought healthcare software business Medforce for $8.7m. As Ideagen’s first US acquisition, this should inspire further momentum across the pond. More transactions may follow this year, as the company seeks to grow internationally and improve earnings visibility. Recurring revenues comprised over 60 per cent of sales at last count.

At 116p, the shares trade on a multiple of 28 times FinnCap’s forecast adjusted EPS of 4.2p for the 2018 financial year. Although that's punchy, geographic expansion could sustain growth rates, while intensifying regulatory scrutiny across multiple sectors this year may drive demand for Ideagen’s products. Buy."

[petewy] 20/4/2018 10:23

IC Harriet Clarfelt tips Elecosoft today. She tipped Idea a week ago.

[cheshire man] 17/4/2018 11:57

The good news just keeps on coming :-)

[rivaldo] 17/4/2018 11:52

Another contract win:



"Sunderland City Council ensures its Corporate priorities remain on track with Ideagen’s software
10 April 2018

The City of Sunderland local authority will monitor strategic and operational performance indicators and actions through Ideagen’s Pentana Performance product

A major UK city council is to ensure its four-year corporate plan remains on track by implementing a software system developed by Ideagen.

Sunderland City Council will monitor and track a series of performance indicators linked to actions, milestones, and accountabilities through Ideagen’s Pentana Performance system.

It’s Corporate Plan, launched in 2016 and set to end in 2020, is a key element of the Council’s overall Performance Management framework.

Pentana Performance will replace a series of manual processes, spreadsheets and access databases, allowing Council staff to electronically manage performance data through a single system, highlight areas of improvement and react quickly to risks.

etc"

[rivaldo] 12/4/2018 08:39

Nice feature in today's Shares Magazine:

"Ideagen makes smart US move with Medforce deal

First acquisition Stateside provides platform for faster growth

RED TAPE AND compliance software supplier Ideagen (IDEA:AIM) has made its first
acquisition in the US. We believe this is a significant stepping stone that could
realise substantial value for the company and shareholders.

New York-based Medforce provides productivity and legal compliance solutions that
help streamline processes for healthcare organisations and prepare them for auditing.

Healthcare is one of the most highly regulated industries in the world. Ideagen is paying $8.7m for Medforce, or about £6.1m at current exchange rates.

There are several things to like about the purchase. First, it gives Ideagen a firm base across the pond. About half of new business currently being won by the company is in the US. Medforce is also profitable, chalking-up about £0.7m of
earnings before interest, tax, depreciation and amortisation (EBITDA) on rough £3.4m revenue in 2017.

A high proportion of those revenues are recurring in nature, 82% according to Ideagen.

Paid out of cash and debt facilities, that means no new shares are being issued so
there is zero dilution to existing Ideagen shareholders.

While analysts raised forecasts for the full year to 30 April 2019 to £11.4m of pre-tax profit on £42.8m revenue, we believe there is scope to outstrip those estimates.

SHARES SAYS: 
Ideagen remains a high quality business that deserves its premium 2019 price to earnings multiple of 24.1"

[wanttowin] 11/4/2018 15:41

All the directors sales going through at 109p

[cheshire man] 10/4/2018 13:16

Thanks for highlighting that rivaldo :-)

[petewy] 10/4/2018 13:14

Yes Riv written by Harriet Clarfelt whom I follow.

[rivaldo] 10/4/2018 12:44

Just tipped this morning in the IC:



"Ideagen (IDEA) has bought Medforce Technologies – a healthcare software business – for $8.7m (£6.2m). This marks the information management software supplier’s first US acquisition, and will be funded with cash and existing debt facilities.

Medforce has all the hallmarks of an astute acquisition. It is growing, profitable and cash generative. Sales for the year to December 2017 of $4.7m comprised more than 80 per cent recurring revenues, while cash profits and post-tax profits were $1m before $400,000 of non-recurring costs. Its ‘Center’ platform is used by more than 300 US-based healthcare customers. All being well, the business should enhance Ideagen’s earnings for the year to April 2019.

Ideagen is an acquisitive company: it made four purchases last financial year. We learnt within the recent half-year results that these have integrated to plan, boding well for Medforce’s performance under new ownership.

IC View

Medforce should bring further growth in the US, while boosting Ideagen’s recurring sales. At 116p, the shares now trade at a demanding 28 times finnCap’s forecast adjusted EPS of 4.2p for the 2018 financial year. But they are also up 43 per cent on our buy tip, and we don’t expect this acceleration to tail off. Buy."

[jimbobaroony] 07/4/2018 15:45

Yep. The medical section of within IDEA have struggled get any traction within NHS, even though their products are good, due to austerity cut backs.

Now they have a new customer base, with LOADS more cash and choice on how its spent, to market these products (Q pulse and DARTOCM)

[igoe104] 07/4/2018 13:57

This is a great strategic acquisition, a great way to get a foothold in USA, they have two offices in NEW YORK and Kansas. also is a good opportunity to establish a reputation for cross-selling etc.




ps.

IC TIP UPDATES:
Shares in Ideagen (IDEA) were up 5 per cent in morning trading, after the information management software provider announced its acquisition of Medforce Technologies for $8.7m (£6.2m). Funded by existing cash reserves and debt facilities, Medforce – a healthcare software company – represents Ideagen’s first US acquisition. It should be earnings-enhancing for the financial year starting 1 May 2018. Buy.

[rivaldo] 06/4/2018 11:40

Techmarketview summarise the news:



"Friday 06 April 2018

Ideagen makes US acquisition to support growth agenda

Ideagen, the AIM-listed specialist in quality, safety, risk, audit and performance management software, has acquired New York-based Medforce for a net consideration of $8.7m in cash.

Medforce was founded back in 2002 and has c300 customers in the US healthcare sector. The company’s Medforce Center products help streamline and automate operational processes while ensuring legal/regulatory compliance. The company turned over $4.7m in 2017 (82% recurring), with profits after tax of $1m.

The US is a high-growth geography for Ideagen at the moment. Indeed, the States generated over half of all new logo wins and 70% of all new SaaS wins in H1 of the current year. The plan is that the acquisition of Medforce will support further growth 'over the pond' while broadening Ideagen's relationships in its existing core sector of healthcare."

[gswredland] 06/4/2018 08:50

Excellent news and the market loves it!

[cheshire man] 06/4/2018 07:23

Excellent news again from IDEA :-)

[rivaldo] 06/4/2018 07:19

Terrific American acquisition - and highly and immediately earnings-enhancing, adding $1m of PAT with no share dilution.

With 300 clients "including a number of Fortune 500 companies", there must be huge cross-selling opportunities plus other cost synergies.

And 82% recurring revenues too. Lovely stuff :o))

[multibagger] 06/4/2018 07:04

Another cracking acquisition across the pond :)

Acquisition of Medforce Technologies Inc

RNS Number : 0387K

6 April 2018

Ideagen PLC
("Ideagen" or the "Group")

Acquisition of Medforce Technologies Inc


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 Medforce Technologies Inc ("Medforce") for a net consideration of $8.7m payable in cash on completion ("the Acquisition").

The consideration for the Acquisition will be financed partly from the Company's existing cash reserves and partly from existing debt facilities.

Acquisition summary

· The Acquisition is the Group's first acquisition of a US company;

· Medforce is a growing, profitable and cash generative healthcare software company having developed the 'Center' suite of enterprise information management, workflow and compliance software;

· 'Center' is used by over 300 US based healthcare customers including a number of Fortune 500 companies to support business process productivity and legal compliance;

· Based in Suffern, New York, USA currently employs 29 staff;

· Medforce achieved for the year ended 31 December 2017 revenue of $4.7m of which 82% is recurring and EBITDA and PAT of $1.0m before costs of $0.4m associated with the primary vendor and a senior manager that will not recur following completion;

· The Acquisition is expected to be earnings enhancing in the Company's accounting period beginning on 1st May 2018.


Acquisition rationale

Medforce represents the company's first US acquisition.

Ideagen is currently experiencing strong growth in the US which generated over 50% of all new logo wins and 70% of all new SaaS wins in the first half of the current financial year. The Acquisition will provide infrastructure and a platform for further growth in this important market as Ideagen continues to execute its global growth plan.

The Acquisition broadens Ideagen's relationships in our existing core sector of healthcare, enhances Ideagen's geographic customer footprint and provides an additional source of recurring revenue.

David Hornsby, CEO of Ideagen, commented:

"Medforce is a valuable addition to the Group and is in line with our strategy of acquiring business that have valuable IP and strong recurring revenues. Medforce has established an extremely compelling value proposition and brings to the Group a complementary solution offering, a talented workforce and long-term customer relationships which further strengthens our position in the US Healthcare market."

About Medforce

Medforce was founded in 2002 and has in excess of 300 customers within the US Healthcare sector.
The Medforce Center product suite supports productivity and legal compliance through its workflow and Information Management tools. Center helps to streamline and automate operational processes, whilst controlling critical content to ensure healthcare organisations are ready and fit for audit. This in turn drives improvements in business performance and maintains a clear view of conformity to legal and regulatory requirements.

Medforce is debt free with current cash balances of approximately $0.3 million. As at 31 December 2017 Medforce had gross assets of $0.5 million. The gross consideration for the Acquisition is $9.0 million.


The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

[melody9999] 05/4/2018 19:04

added a few more today. defensive qualities in a volatile market appeal.

[cheshire man] 04/4/2018 13:41

All very encouraging for holders rivaldo :-)

[rivaldo] 04/4/2018 13:38

Another contract win, this time in the USA - I'd never heard of Dawn Foods, but it seems they have annual turnover of between $1-2 billion:



"Dawn Food Products, Inc. to support enterprise risk management across its global operations with Ideagen’s software
29 March 2018

The US company will implement Pentana Audit across its global internal audit operations including manufacturing sites in the USA, Mexico and Europe

Dawn Foods Products, Inc., providers of quality bakery products and innovative food solutions, is to work with Ideagen to improve processes around enterprise risk management across its global operations.

The US-based foods company will implement Ideagen’s Pentana Audit software for its worldwide internal audit operations which includes operational audits of its distribution centres and key manufacturing sites in Michigan, USA, Naucalpan in Mexico and Amsterdam, the Netherlands.

Pentana Audit will also help Dawn Foods’ internal audit team conduct financial audits as well as extensively support external auditors during the business’ interim and year-end financial audits.

Vadiraj Chenji, Director of Internal Audit at Dawn Foods, said Pentana Audit will bring with it efficiency and time savings – as well as improve enterprise level risk management (ERM).

etc"

[rivaldo] 26/3/2018 12:41

News of expansion in the Asia-Pacific region:



"Ideagen to expand operations in Southeast Asia
26 March 2018

Ideagen, the global software firm, is expanding its operations in Southeast Asia.

The project involves Ideagen’s office in Kuala Lumpur, Malaysia, and will enhance the company’s support, development and service capability for its 3000+ client base.

The expansion, relocation and refurbishment will strengthen Ideagen’s operational foundations across the Asia-Pacific region as well as ‘future proof’ the business against potential operational risk.

The new Kuala Lumpur office will act as a central hub for Ideagen’s expanding business in the region following prominent projects with AirAsia, Lion Air, HKExpress and Haeco. Around 40 members of staff will be located there, with Ideagen already adding software development expertise.

Barnaby Kent, Ideagen’s Chief Operations Officer, said the expansion was a natural step for the company and would cement Ideagen’s place as a leader in the Governance, Risk and Compliance (GRC) marketplace.

He added: “In recent years, we have witnessed rapid growth both through acquisitions and organically and this expansion project is a natural next step in Ideagen’s journey.

etc"

[gswredland] 22/3/2018 17:59

Dare I say it but holding up well today in volatility- good sign

[gswredland] 22/3/2018 17:59

Dare I say it but holding up well today in volatility- good sign