TIDMIDEA
RNS Number : 5547R
Ideagen PLC
09 March 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
9 March 2021
Ideagen PLC
("Ideagen" the "Company" or the "Group")
Acquisition of Qualtrax
Ideagen PLC (AIM: IDEA), a leading supplier of regulatory and
compliance software, is pleased to announce the acquisition of
Qualtrax Inc ("Qualtrax" and "the Acquisition") to further extend
the Group's presence in the United States for a total net cash
consideration of approximately $14.9 million.
Acquisition Highlights
-- Qualtrax is a fast-growing supplier of QHSE to a number of
highly regulated industries including laboratory services,
manufacturing and aerospace
-- 350 clients, including WalMart, the D.C. Office of the Chief
Medical Examiner, Colorado Bureau of Investigation and the Arkansas
State Crime Lab
-- Currently employs 40 people from its office in Blacksburg,
Virginia which will become Ideagen's new US HQ
-- Qualtrax's current Annualised Recurring Revenue (ARR) book is
approximately $5.1 million of which over 90% is SaaS
About Qualtrax
Founded in 1993, Qualtrax is a provider of QHSE (quality,
health, safety and environmental) compliance software specialising
on the laboratory, manufacturing and aerospace sectors. The
business is based in Virginia, USA, from where it services 350
customers including WalMart, the D.C. Office of the Chief Medical
Examiner, Colorado Bureau of Investigation, and the Arkansas State
Crime Lab. In recent years Qualtrax has successfully transitioned
its business model such that over 90% of revenue is currently
delivered as SaaS.
The Qualtrax management team will remain in place to lead
Ideagen's expansion in the USA. Building on the Group's established
US platforms of IX and Medforce, the acquisition will strengthen
and consolidate Ideagen's operations in this core growth geography,
which already accounts for around 35% of Group revenue. Qualtrax's
base in Virginia will become Ideagen's North American headquarters
and the 40 Qualtrax employees are expected to transition to
Ideagen.
Qualtrax recorded revenue of approximately $5.2 million for the
year ended 31 December 2020, growing from $4.5 million in the
previous year, and modestly positive EBITDA. Qualtrax currently has
an Annualised Recurring Revenue (ARR) book of approximately $5.1
million, which has grown strongly over the last two financial
years. Ideagen expects to maintain a double-digit revenue growth
trajectory and is forecasting that Qualtrax will deliver adjusted
EBITDA of approximately $1.5 million in the first full financial
year of ownership to 30 April 2022.
All financial metrics regarding Qualtrax are stated on an
unaudited basis.
Consideration for the Acquisition
The consideration for the Acquisition is payable in cash on
completion and calculated on a cash-free debt-free basis, amounting
to approximately $14.9 million, of which $1.65 million is being
held back in escrow for 12 months following completion. The
consideration will be funded from the Company's existing
resources.
Ben Dorks, Chief Executive Officer of Ideagen commented:
"I am very pleased to announce the addition of Qualtrax to our
Group and the expansion of our presence in the United States.
Qualtrax brings a high quality customer base, strong growth, a high
level of recurring revenue and also bolsters our platform for
expansion in the USA."
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Executive Chairman
---------------
Ben Dorks, Chief Executive Officer
---------------
Emma Hayes, Chief Financial Officer
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finnCap Limited (NOMAD and Joint Broker) 020 7220 0500
---------------
Henrik Persson / James Thompson (Nomad)
---------------
Alice Lane / Sunila Da Silva (ECM)
---------------
Canaccord Genuity Limited (Joint Broker) 020 7523 8000
---------------
Simon Bridges
---------------
Richard Andrews
---------------
About Ideagen plc
About Ideagen plc Ideagen is a UK-headquartered, global
technology company quoted on the London Stock Exchange AIM market
(Ticker: IDEA.L).
A global supplier of regulatory and compliance solutions,
Ideagen provides a common software platform and an integrated risk-
based approach to meet multi-industry standards, enabling
compliance with relevant laws, policies, and regulations.
The Group provides software and services to organisations
operating within highly regulated industries such as life sciences,
healthcare, banking and finance, insurance, aviation, and aerospace
and defence, with its main operational premises spread throughout
the UK, EU, US, Middle East and SE Asia.
Currently, more than 5,700 organisations use Ideagen's products
including nine of the top 10 UK accounting firms, all of the top
aerospace and defence companies and 75% of the world's leading
pharmaceutical firms. Ideagen's diverse and varied customer base
includes many well-known, global brands such as British Airways,
Aggreko, BAE, Ryanair, US Navy, KLM, BBVA, Bank of New York,
Commerzbank, Meggitt, Heineken, Johnson Matthey, Haeco Group and
European Central Bank. As well as this, Ideagen counts 250
hospitals across the UK and US amongst its client base. For further
information please visit www.ideagen.com.
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