Ideagen PLC Acquisition of Medforce Technologies Inc (0387K)
April 06 2018 - 1:00AM
UK Regulatory
TIDMIDEA
RNS Number : 0387K
Ideagen PLC
06 April 2018
6 April 2018
Ideagen PLC
("Ideagen" or the "Group")
Acquisition of Medforce Technologies Inc
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
Medforce Technologies Inc ("Medforce") for a net consideration of
$8.7m payable in cash on completion ("the Acquisition").
The consideration for the Acquisition will be financed partly
from the Company's existing cash reserves and partly from existing
debt facilities.
Acquisition summary
-- The Acquisition is the Group's first acquisition of a US company;
-- Medforce is a growing, profitable and cash generative
healthcare software company having developed the 'Center' suite of
enterprise information management, workflow and compliance
software;
-- 'Center' is used by over 300 US based healthcare customers
including a number of Fortune 500 companies to support business
process productivity and legal compliance;
-- Based in Suffern, New York, USA currently employs 29 staff;
-- Medforce achieved for the year ended 31 December 2017 revenue
of $4.7m of which 82% is recurring and EBITDA and PAT of $1.0m
before costs of $0.4m associated with the primary vendor and a
senior manager that will not recur following completion;
-- The Acquisition is expected to be earnings enhancing in the
Company's accounting period beginning on 1(st) May 2018.
Acquisition rationale
Medforce represents the company's first US acquisition.
Ideagen is currently experiencing strong growth in the US which
generated over 50% of all new logo wins and 70% of all new SaaS
wins in the first half of the current financial year. The
Acquisition will provide infrastructure and a platform for further
growth in this important market as Ideagen continues to execute its
global growth plan.
The Acquisition broadens Ideagen's relationships in our existing
core sector of healthcare, enhances Ideagen's geographic customer
footprint and provides an additional source of recurring
revenue.
David Hornsby, CEO of Ideagen, commented:
"Medforce is a valuable addition to the Group and is in line
with our strategy of acquiring business that have valuable IP and
strong recurring revenues. Medforce has established an extremely
compelling value proposition and brings to the Group a
complementary solution offering, a talented workforce and long-term
customer relationships which further strengthens our position in
the US Healthcare market."
About Medforce
Medforce was founded in 2002 and has in excess of 300 customers
within the US Healthcare sector.
The Medforce Center product suite supports productivity and
legal compliance through its workflow and Information Management
tools. Center helps to streamline and automate operational
processes, whilst controlling critical content to ensure healthcare
organisations are ready and fit for audit. This in turn drives
improvements in business performance and maintains a clear view of
conformity to legal and regulatory requirements.
Medforce is debt free with current cash balances of
approximately $0.3 million. As at 31 December 2017 Medforce had
gross assets of $0.5 million. The gross consideration for the
Acquisition is $9.0 million.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Chief Executive
Graeme Spenceley, Finance Director
finnCap Limited 020 7220 0500
Stuart Andrews/Henrik Persson/James
Thompson (Nomad)
Stephen Norcross (Corporate
Broking)
About Ideagen plc
Ideagen is a UK company quoted on the London Stock Exchange AIM
market (Ticker: IDEA.L).
Ideagen is a supplier of Information Management software with
operations in the UK, the United States and the Middle East. The
Company specialises in GRC (Governance, Risk and Compliance) and
Content and Clinical solutions with a primary focus on
organisations operating within highly regulated industries. With an
excellent portfolio of software products, Ideagen can provide
complete information lifecycle solutions that enable organisations
to reduce risk, meet their regulatory and compliance standards,
helping them to reduce costs and improve efficiency
The Group has a customer base of over 3,000 organisations using
the Ideagen of products, including many blue chip names such as BAE
Systems, Emirates, Shell and the European Central Bank as well as
150 hospitals in the UK and US.
For further information please visit www.ideagen.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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