TIDMIDOX
RNS Number : 7296H
IDOX PLC
22 August 2016
22 August 2016
Idox plc
("Idox", the "Company" or the "Group")
Acquisition of Rippleffect Studio Limited
Significant expansion in digital capability
Idox plc (AIM: IDOX), a leading supplier of specialist
information management solutions and services, is pleased to
announce that it has acquired the entire issued share capital of
Rippleffect Studio Limited ("Rippleffect") (the "Acquisition") for
GBP2.0 million (after working capital adjustments). The Acquisition
is in line with Idox's target of achieving GBP100m of revenues at
sustainable margins in the short to medium term, through a
combination of organic growth and acquisitions.
Reasons for and benefits of the Acquisition
Rippleffect is a full-service digital agency which delivers
creative digital solutions for clients across the UK. Founded in
1999, it is ranked as one of the UK's top 20 digital agencies.
Rippleffect works with some of the most ambitious brands and
influential organisations from industries such as sport, retail,
tourism, leisure, food & drink and arts & culture. Current
clients include Everton and Liverpool football clubs, UK Sport,
Visit Guernsey, Aldermore Bank, J D Wetherspoon and the Health
Foundation.
Rippleffect's services cover the full spectrum of digital
solutions, including strategy and planning, user experience, web
design and development, ecommerce, search engine optimisation and
digital advertising.
The Acquisition supports the Group's strategy of extending its
digital capability and expanding its delivery of digital services
across all its domains and sectors. Overall, it will enable the
Group to offer an increased range of value enhancing services to
all its customers.
Rippleffect will be fully integrated into Idox and will operate
in conjunction with Idox's existing digital agency, Reading Room,
in line with the Group's strong integration track record. The
business, which employs over 70 staff, will remain based in
Liverpool and will be managed by its existing team reporting to the
Group managing director responsible for Idox's digital
agencies.
For its financial year ended 27 December 2015, Rippleffect
reported revenue of GBP6.3 million, gross profit of GBP1.8 million,
EBITDA of GBP54,694 and net profit of GBP34,934. Net assets were
GBP1.2millon.
Terms of the Acquisition
This consideration of GBP2.0 million comprises the acquisition
price of GBP1.95 million and an adjustment of approximately GBP0.05
million based on the working capital and indebtedness of
Rippleffect as at the date of acquisition. The maximum total
consideration for the Acquisition, including deferred
consideration, is approximately GBP2.05 million including costs,
payable in cash from the Company's existing debt facilities. The
Acquisition is expected to be earnings enhancing in the first full
year of ownership.
Richard Kellett-Clarke, CEO of Idox, commented:
"The acquisition of Rippleffect significantly enhances our
growing presence in the digital B2C marketplace. It supports our
strategy to extend our markets as well as increasing our capability
to deliver digital services across our public and private sector
markets. It is expected to be earnings enhancing and to support our
target of achieving GBP100m of revenues in the short term to medium
term."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
-ends-
Enquiries:
Idox plc +44 (0) 870 333 7101
Laurence Vaughan, Chairman
Richard Kellett-Clarke, Chief Executive
Jane Mackie, Chief Financial Officer
N+1 Singer (NOMAD and Broker) +44 (0) 20 7496 3000
Shaun Dobson
Liz Yong
MHP (Financial PR) +44 (0) 20 3128 8100
Reg Hoare/Andrew Leach/Charlie Barker
About Idox plc
Idox plc is a supplier of specialist document management
collaboration solutions and services to the public sector and
increasingly to highly regulated asset intensive industries around
the world in the wider corporate sector.
Its Public Sector Software Division is the leading applications
provider to UK local government for core functions relating to
land, people and property, such as its market leading planning
systems and election management software. Over 90% of UK local
authorities are now customers. The Division provides public sector
organisations with tools to manage information and knowledge,
documents, content, business processes and workflow as well as
connecting directly with the citizen via the web, and providing
elections management solutions. It also supplies in the UK and
internationally, decision support content such as grants and
planning policy information and corporates compliance services.
The Engineering Information Management Division delivers
engineering document control, project collaboration and facility
management applications to many leading companies in industries
such as oil & gas, architecture and construction, mining,
utilities, pharmaceuticals and transportation in North America and
around the world.
The Group employs over 690 staff located in the UK, the USA,
Canada, Europe, India and Australia.
For more information see www.idoxplc.com and @Idoxgroup.
This information is provided by RNS
The company news service from the London Stock Exchange
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August 22, 2016 02:00 ET (06:00 GMT)