Ideagen (IDEA) : Corp

Bolt-on acquisition

Key data

  • Share price (p) 149.0
  • Target price (p) 180.0
  • Market cap (£m) 327.5
  • Enterprise value (£m) 328.8

Demonstrating execution of its successful combination of organic and acquired growth, Ideagen has acquired Optima Diagnostics, a London-based provider of a SaaS-based Health & Safety compliance solution with an 80-strong customer base including well-known names such as Airbus, Sellafield and BAE. With £0.9m ARR (£1m total revenue), acquired at 2x recurring revenue, the acquisition continues Ideagen’s drive to consolidate the fragmented elements of the Quality, Health & Safety, and Environment Management Software subsectors, accumulating a broader client base to better support current requirements as well as assisting their inevitable transition to the cloud. We lift forecasts to accommodate £0.3m EBITDA from £1m revenue in FY21. Integration will adopt Ideagen’s methodical approach to acquisitions – also, typically, comfortably funded from existing resources. Target 180p reiterated.

Andrew Darley 020 7220 0547

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