Ideagen PLC Acquisition of Scannell Solutions Ltd (9403M)

TIDMIDEA

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 GBP3.5m (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 EUR1m in revenues of which EUR0.7m 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 EUR0.3m additional EBITDA following the realisation of identified synergies.

Consideration for the Acquisition

The total consideration payable of GBP3.5 million is in cash and will be paid as follows:

   --    GBP3.0m is payable on completion; 
   --    GBP0.5m 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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January 14, 2019 02:00 ET (07:00 GMT)