25th Jun 2014 09:41
LONDON (Alliance News) - Ideagen PLC said Wednesday it has acquired the entire issued share capital of EIBS Ltd for a net cash consideration of GBP1.25 million.
Funded by Ideagen's existing cash reserves, the information management software company said that the acquisition of the software company is expected to be earnings enhancing in the first full financial period following completion of the deal.
The deal has a total cash consideration of GBP1.55 million; EIBS has net cash reserves of GBP0.3 million, giving net cash consideration of GBP1.25 million, to be met from Ideagen's existing cash reserves.
EIBS is a software company that has developed proprietary Information Portal, Internet and Mobile solutions for the NHS and numerous public sector, not for profit and commercial organisations. The company has approximately 140 customers, including 40 NHS Trusts.
Ideagen said that the acquisition will increase its customer base within a number of regulated market sectors, and "further consolidates the Group's position in the NHS providing 40 trusts as customers." The company expects that the deal provides significant cross-selling and up-selling opportunities and rapidly accelerates the delivery of its mobile product strategy.
In the year ended July 31, 2013 EIBS generated revenues of GBP1.6 million and a pretax loss of GBP0.1 million. Current recurring revenues are GBP0.9 million per annum.
Ideagen said EIBS's Chief Technology Officer, Matt Burnett will remain with the enlarged Group and will be appointed the role of Chief Technology Officer - Content Solutions, reporting directly to the Ideagen CEO David Hornsby, on completion of the acquisition.
"The combination of EIBS and Ideagen will enable the enlarged Group to rapidly develop new applications for our key markets and we believe the Acquisition provides an outstanding opportunity to leverage our position in the NHS and other regulated market sectors. We are confident that we can make the EIBS business significantly more profitable over the next 12 months as we integrate it into the rest of the Group," said Hornsby.
Shares in Ideagen were trading 0.54% higher at 39.46 pence per share Wednesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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