13th Sep 2018 17:15
LONDON (Alliance News) - Ideagen PLC on Thursday said it has raised GBP20 million through a share placing to fund certain identified acquisition opportunities.
The software company has issued 14.1 million shares at a price of 142 pence each. The stock closed 0.3% lower on the day Thursday at 148.00p per share.
finnCap Ltd acted as the sole bookrunner in relation to the placing.
Ideagen intends to use proceeds to cover the acquisition of undisclosed software provider, operating in the UK and US, which has a revenue run rate of GBP5.3 million and earnings before interest, taxes, depreciation, and amortization of GBP1.7 million.
Ideagen expects to cover the cost of the transaction, which is expected to be completed in the next four weeks, with GBP21 million in cash. The acquisition is also anticipated to be earnings enhancing from the first full year of ownership.
In addition to that, the company said it plans to acquire further two software-as-a-service firms, with one of them operating in aviation and the other one in environmental health & safety market.
These companies, which were also unnamed, were valued between GBP2 million and GBP3 million in cash. The transaction is expected to be completed within the next six months, Ideagen said.
Looking forward, the company said it saw further growth in its recurring revenue, with strong demand for its products from new customers.
"I am delighted to announce the successful conclusion of this fundraise which was heavily oversubscribed with support from both existing and new shareholders. Ideagen values the ongoing support it has received from its existing shareholders and welcomes the many new institutional investors as shareholders in the company. The proceeds from the placing will enable Ideagen to significantly accelerate its growth objectives by acquisition and deliver further value to shareholders," said Executive Chairman David Hornsby.
Related Shares:
IDEA.L