10th Jun 2019 09:25
LONDON (Alliance News) - Governance, risk management and compliance software provider Ideagen PLC said Monday it has acquired software-as-a-service company Redland Solutions Ltd for GBP15.8 million.
Redland Solutions provides software for the financial services industry, namely its Insight platform, which assists banks, investment managers and insurance firms with adapting businesses to fit with regulatory changes.
In particular, Redland's software helps businesses to manage itself under the Senior Managers and Certification Regime, which was introduced in December 2013 to increase the accountability of senior managers for their conduct.
For the year to the end of March, Redland had an operating profit of GBP1.2 million, on revenue of GBP3.6 million.
The acquisition will be funded through a GBP28 million revolving credit facility with NatWest Bank, which runs for three years. An additional GBP500,000 can be paid in the next 12 months should certain annual recurring revenue targets be achieved.
The acquisition is said to be immediately earnings enhancing for Ideagen and is expected to add mid-single digit accretion in the current financial year ending July 31.
"Redland is an extremely valuable addition to the group and is in line with our strategy of acquiring Integrated Risk Management businesses that have strong IP and growing recurring revenues. Financial Services is an important vertical market for Ideagen and the combination of Redland's Insight Platform with Ideagen's Pentana will provide a compelling proposition covering internal audit, risk management, certification and SMCR compliance," said Executive Chair David Hornsby.
Shares in Ideagen were up 2.6% at 147.80 pence on Monday.
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