10th Aug 2020 10:12
(Alliance News) - Ideagen PLC on Monday said trading in the first quarter has remained "robust" amid continued demand for its products from new customers and within the existing customer base.
In addition, the supplier of information management software announced the acquisition of Qualsys Ltd, a supplier of electronic quality management software, for a net consideration of GBP15.6 million.
The purchase will be funded from existing cash and debt resources, Ideagen said, and is expected to be modestly earnings enhancing in the current financial year. It is expected that Qualsys will make a contribution of GBP600,000 to the company's adjusted earnings before interest, tax, depreciation and amortization within the current financial year to the end of April 2021 and GBP1.5 million in the year to the end of April 2022.
The acquisition provides Ideagen with a strong growth opportunity, accelerating the existing development roadmap of Ideagen's Q-Pulse product, it said.
Qualsys' current annualised recurring revenue book is GBP2.9 million, an increase of 38% per year over the last three years.
Turning back to trading, Ideagen said sectors such as Financial Services, Pharmaceutical and US Federal are performing particularly well with notable contract awards from KPMG, GlaxoSmithKline PLC, Medtronic PLC and Bank of Montreal. Moreover, the company is starting to see increased business activity and a growing pipeline within the Manufacturing sector.
Ideagen said its business model is resilient, so it believes the business will continue to perform in line with market expectations over the coming months.
Ideagen shares were trading 4.7% higher in London on Monday at 184.24 pence each.
By Evelina Grecenko; [email protected]
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