5th Sep 2018 11:58
LONDON (Alliance News) - Information management software provider Ideagen PLC said Wednesday it has acquired InspectionXpert Inc for up to USD7 million in cash.
Ideagen will fund the acquisition through its existing reserves and debt facility. Of the USD7 million, USD5 million is payable on completion with a further GBP1 million deferred for a year. The remaining USD1 million will be paid December 2019 provided certain performance targets are met.
InspectionXpert is a software-as-a-service company and developed a piece of digital quality inspection software for use in engineering and manufacturing. At its current run rate, the North Carolina-based company is generating USD2.8 million in revenue.
InspectionXpert's earnings before interest, taxation, depreciation and amortization in the year to June came to USD200,000 and the acquisition is expected to be earnings neutral in Ideagen's current financial year.
In the first full year of ownership, InspectionXpert will contribute USD700,000 in additional earnings before interest, taxation, depreciation and amortization to Ideagen once synergies have been realised.
"Increasingly original equipment manufacturers are driving automated inspection initiatives through their supply chains in order to reduce costs and improve product quality. This acquisition further consolidates our position within the fast-growing quality market and strengthens our US presence," said Ideagen Chairman David Hornsby.
Shares in Ideagen were down 1.0% at 156.00 pence on Wednesday.
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