Listed RegTech Ideagen has made yet another acquisition as it posts strong six-monthly results.
Nottingham-based Ideagen, which specialises in compliance software, has moved for CompliancePath Holdings, a software validation and assurance business focused predominantly on the healthcare and life science sectors.聽
Based in Glasgow, it has two offices in the US and a base in Barbados, and has been an Ideagen technology partner for a number of years.
The deal is for an initial 拢4.5 million with a conditional deferred earnout of up to 拢4.5m, payable over the next two years, linked to strong revenue and earnings growth.聽
CompliancePath recorded revenues of approximately $2.1m and profit before tax of almost $1m in the 12 months to 30 September 2021 with net assets of $1.5m at that date.
Ideagen, which recently completed its biggest deal to date after snapping up Australian company CompliSpace, has also released its results for the six months to 31st October.
The group expects to report total revenue for the first half up 33% at approximately 拢38.8m, while recurring revenue grew by 41% to 拢34.2m, representing 88% of total revenues compared with 83% in the same period last year.聽
Adjusted EBITDA聽 is expected to increase by 32% to approximately 拢13.2m. The group had a gross cash balance as at 31st October of 拢51.9m and bank borrowings of 拢47.5m, leaving a net cash position at the period end of 拢4.4m.
“Ideagen delivered a robust performance in the first six months, which not only reflects the strength of our business model and the merits of SaaS, but also the investment in our people, our products, and our customers,鈥� said CEO Ben Dorks.
鈥淪ince the first half ended, I am pleased to have completed four acquisitions with significant synergy opportunity and welcome these products and teams to the group.聽
鈥淭he group continues to generate strong organic growth while executing on our strategy of acquiring businesses that extend our leadership in compliance software for regulated industries.
鈥淚deagen enters the second half of the year in a great position, confident of delivering on its expectations for the year and the considerable opportunity continuing our current M&A plus organic growth strategy that lies ahead.”
Ideagen, which has reported 12 consecutive years of revenue and profit growth, secured a 拢100 million funding package for acquisitions and swooped to acquire two other RegTech businesses recently.
Ideagen has a presence in 150 countries and provides quality, audit and risk software to organisations operating in highly regulated industries.聽
Its clients span sectors including aviation, financial services, life science, healthcare and manufacturing, and it has 鈥榗entres of excellence鈥� in the UK, Europe, America, UAE and South East Asia.