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Ideagen PLC
('Ideagen' 'the Company' or 'the Group')
Acquisition of Workrite 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 Workrite Ltd ('Workrite') for a net cash consideration of up to £6.8m (the 'Acquisition').
Highlights
· Workrite is a fast growing Software as a Service ('SaaS') business that has developed a SaaS based e-learning platform for the Occupational Health and Safety market
· Workrite, based in West Sussex, has approximately 500 customers including the London Stock Exchange, Panasonic, Kings College London, The Law Society and Credit Suisse
· On a current run rate Workrite is generating approximately £1.7m in revenues of which £1.6m is recurring
· The Acquisition is expected to be earnings neutral in this financial year and in the first full year of ownership will contribute £0.7m additional EBITDA.
· Workrite will become a key component of the Ideagen cloud proposition providing a content rich, scalable e-learning solution supporting the Group's strategy as a consolidator within the Global Quality, Health, Safety and Environmental ('QHSE') market
Consideration and source of funding
The initial cash consideration of £6.0m was paid on completion and a further payment of £0.8m will be made out of escrow on the first anniversary of the acquisition if certain business objectives are achieved.
The consideration will be funded from the Group's cash reserves and existing debt facility.
The board is pleased with the strong level of cash collections in the second half of the financial year which is running in line with expectations. The Group has extended the size of its debt facility from £28m to £40m to fund further acquisitions.
David Hornsby, Executive Chairman of Ideagen, commented; ' We are delighted to announce our third acquisition of the year. Workrite is highly complementary to Ideagen and in line with our strategy of acquiring businesses that have strong IP and recurring revenues. EHSQ is a valuable yet fragmented market and the acquisition will further enhance our market position providing a leading e-learning solution for new and existing customers.
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) | |
Canaccord Genuity Limited | 020 7523 8000 |
Simon Bridges | |
Richard Andrews |
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Acquisition of Workrite Ltd - RNS
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Ideagen plc published this content on 06 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2020 07:07:02 UTC
