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Ideagen

  • BY: Andrew Hore |
  • POSTED: 18/12/2012 |

Information management software provider Ideagen says that trading is in line with expectations and it is expanding through the acquisition of healthcare software supplier Plumtree for £2.5m.

Ideagen is also raising £6m at 19p a share. this will fund the cash cost of the acquisition with plenty of cash left to finance working capital.

Plumtree provides an entry into the UK healthcare sector and there are cross-selling opportunities. The acquisition brings its own software products and 125 NHS clients to the group. Revenues were £2.44m and EBITDA was £450,000 in the year to March 2012.

Plumtree will cost £2.3m, net of cash in the business. Ideagen is paying £16m in cash (gross) and £900,000 in shares at 20p a share.

Underlying profit is expected to rise from £1.1m to £1.8m in the year to April 2013. The acquisition and share issue will be slightly dilutive and this year’s earnings per share forecast has been cut from 1.6p to 1.48p. A full year contribution from Plumtree should ensure a further rise in profit to £2.5m in 2013-14 and a small increase in earnings per share.

At 18.75p a share, Ideagen is valued at £17.6m – based on the enlarged share capital. Net cash will be £5.4m after the placing.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2012_39.pdf

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