6th Mar 2020 09:26
(Alliance News) - Software company Ideagen PLC said Friday it has acquired software-as-a-service business Workrite Ltd for up to GBP6.8 million in cash.
Workrite has recently developed a SaaS-based e-learning platform for the occupational health & safety market.
Ideagen will pay an initial GBP6.0 million on completion, and then make a further payment of GBP800,000 out of escrow on the first anniversary of the acquisition, should certain business objectives be achieved.
On acquisition, Workrite will become part of Ideagen's cloud proposition, and provide a content-rich, scalable e-learning services supporting the firm's strategy for consolidating the Global Quality, Health, Safety and Environmental market.
The acquisition is expected to be earning neutral for Ideagen's current financial year, and will contribute GBP700,000 in earnings before interest, taxes, depreciation and amoritsation.
"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," said Executive Chair David Hornsby.
Shares in Ideagen were down 2.1% at 179.10 pence on Friday in London.
By Dayo Laniyan; [email protected]
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