Ideagen (IDEA)

Sector:

IT Services

Index:

FTSE AIM 100

170.00p
   
  • Change Today:
    -10.00p
  • 52 Week High: 207.00
  • 52 Week Low: 138.00
  • Currency: UK Pounds
  • Shares Issued: 226.62m
  • Volume: 88,494
  • Market Cap: £385.25m

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Ideagen buys Morgan Kai Group for £21m

By Josh White

Date: Friday 28 Sep 2018

LONDON (ShareCast) - (Sharecast News) - Information management software supplier Ideagen has acquired the entire issued share capital of Morgan Kai Group for a net consideration of £20.5m, it announced on Friday.
The AIM-traded firm described Morgan Kai as a "profitable and growing" software company that developed the internal audit management product 'MKinsight'.

It said MKinsight was used by more than 370 customers across a number of highly regulated vertical markets, including public sector, banking and finance, engineering, healthcare and energy.

With operations in Leeds and Chicago, Morgan Kai currently employed 28 people and provided further infrastructure and customers to support the Group's global growth objective.

More than 77% of customers are international, with 28% based in the United States.

Customers included the UK's National Audit Office, the Federal Reserve, Investec, the New York Stock Exchange, Shell, Bombardier and Blue Cross Blue Shield.

Ideagen said the addition of MKinsight to the group doubled the existing Ideagen Internal Audit business, providing scale, enhanced technology and a strong competitive position.

On a current run rate, Morgan Kai was generating around £5.3m in revenues, with current run rate recurring revenue standing at £3.2m and adjusted run rate EBITDA at £1.7m.

Ideagen said the acquisition was expected to be immediately earnings enhancin, and was expected to contribute £2.0m additional EBITDA for the year to 30 April 2020 following the realisation of £0.3m synergies.

The total net consideration payable was £20.5m in cash, being £22.4m gross consideration payable by Ideagen less cash balances in Morgan Kai of approximately £1.9m.

It said the consideration was being funded from the proceeds of its recent share placing and from existing cash reserves, and would be paid in full on completion.

Morgan Kai was the 'near term target' referred to in the company's announcement on 13 September , the board confirmed.

"Morgan Kai is an extremely valuable addition to the Group and is in line with our strategy of acquiring GRC business that have strong IP and growing recurring revenues," said Ideagen's executive chairman David Hornsby.

"Internal Audit has represented a core market for Ideagen since the acquisition of Pentana in 2013, the addition of MKinsight to our product portfolio will enhance our scale and capability and provide a strong platform for continued growth globally."

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Ideagen Market Data

Currency UK Pounds
Share Price 170.00p
Change Today -10.00p
% Change -5.56 %
52 Week High 207.00
52 Week Low 138.00
Volume 88,494
Shares Issued 226.62m
Market Cap £385.25m

Ideagen Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.65% below the market average99.65% below the market average99.65% below the market average99.65% below the market average99.65% below the market average
97.92% below the sector average97.92% below the sector average97.92% below the sector average97.92% below the sector average97.92% below the sector average
Price Trend
73.86% above the market average73.86% above the market average73.86% above the market average73.86% above the market average73.86% above the market average
59.22% above the sector average59.22% above the sector average59.22% above the sector average59.22% above the sector average59.22% above the sector average
Income
95.13% below the market average95.13% below the market average95.13% below the market average95.13% below the market average95.13% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
83.80% above the market average83.80% above the market average83.80% above the market average83.80% above the market average83.80% above the market average
84.95% above the sector average84.95% above the sector average84.95% above the sector average84.95% above the sector average84.95% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
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Ideagen Dividends

  Latest Previous
  Interim Final
Ex-Div 27-Feb-20 07-Nov-19
Paid 18-Mar-20 26-Nov-19
Amount 0.10p 0.19p

Trades for 07-Jul-2020

Time Volume / Share Price
16:36 1,000 @ 173.00p
16:36 2,000 @ 173.00p
16:35 10 @ 170.00p
16:18 500 @ 172.95p
16:18 9,039 @ 175.00p

Ideagen Key Personnel

CEO Ben Dorks
COO Barney Kent
CFO Emma Hayes

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