Ideagen PLC Acquisition of Workrite Ltd
March 06 2020 - 2:00AM
RNS Non-Regulatory
TIDMIDEA
Ideagen PLC
06 March 2020
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
GBP6.8m (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
GBP1.7m in revenues of which GBP1.6m is recurring
-- The Acquisition is expected to be earnings neutral in this
financial year and in the first full year of ownership will
contribute GBP0.7m 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 GBP6.0m was paid on completion
and a further payment of GBP0.8m 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 GBP28m to GBP40m 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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END
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