28th Sep 2018 11:37
LONDON (Alliance News) - Ideagen PLC on Friday said it intends to acquire Morgan Kai Group Ltd for net consideration of GBP20.5 million payable in cash.
The software supplier said it intends to fund the purchase from the proceeds of its recent share placing and from existing cash reserves.
Earlier in September, Ideagen raised GBP20 million through 14.1 million share placing at a price of 142 pence each. The stock was trading 0.9% higher on the day Friday at 161.50p per share.
Morgan Kai is a software company that has developed an internal audit management product MKinsight. The technology is used by over 370 customers across public sector, banking and finance, engineering, healthcare and energy.
Ideagen believes that the addition of MKinsight will double its existing Ideagen internal audit business and will provide scale, enhanced technology and a strong competitive position.
The company said, in 2017, Morgan Kai generated pretax profit of GBP900,000.
"The addition of MKinsight to our product portfolio will enhance our scale and capability and provide a strong platform for continued growth globally," said Executive Chairman David Hornsby.
Related Shares:
IDEA.L