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 for a total cash consideration of £3.5m.
- 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."