finnCap Research Company Notes - 11 October 2019
Oct 11, 2019 / News
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Sector: Technology & Telecoms
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
adarley@finncap.com