Ideagen acquires Workrite Ltd for £6.8 million

LONDON: Ideagen PLC, a leading supplier of Information Management software to highly regulated industries, has announced the acquisition of the entire issued share capital of Workrite Ltd for a net cash consideration of up to £6.8 million. The consideration will be funded from the Group’s cash reserves and existing debt facility.

Highlights

• Workrite is a fast growing Software as a Service (SaaS) business that has developed a SaaS based e-learning platform for the Occupational Health and Safety market
• Workrite, based in West Sussex, has approximately 500 customers including the London Stock Exchange, Panasonic, Kings College London, The Law Society and Credit Suisse
• On a current run rate Workrite is generating approximately £1.7m in revenues of which £1.6m is recurring
• The Acquisition is expected to be earnings neutral in this financial year and in the first full year of ownership will contribute £0.7m additional EBITDA.
• Workrite will become a key component of the Ideagen cloud proposition providing a content rich, scalable e-learning solution supporting the Group’s strategy as a consolidator within the Global Quality, Health, Safety and Environmental (“QHSE”) market

The initial cash consideration of £6.0m was paid on completion and a further payment of £0.8m will be made out of escrow on the first anniversary of the acquisition if certain business objectives are achieved.

The board is pleased with the strong level of cash collections in the second half of the financial year which is running in line with expectations. The Group has extended the size of its debt facility from £28m to £40m to fund further acquisitions.

David Hornsby, Executive Chairman of Ideagen, commented; ” We are delighted to announce our third acquisition of the year. Workrite is highly complementary to Ideagen and in line with our strategy of acquiring businesses that have strong IP and recurring revenues. EHSQ is a valuable yet fragmented market and the acquisition will further enhance our market position providing a leading e-learning solution for new and existing customers.