TIDMIDOX
RNS Number : 1865F
IDOX PLC
26 July 2016
26 July 2016
Idox plc
("Idox", the "Company" or the "Group")
Acquisition of Open Objects Software Ltd
Significant expansion in important Social Care domain
Idox plc (AIM: IDOX), a leading supplier of specialist
information management solutions and services, is pleased to
announce that it has acquired the entire issued share capital of
Open Objects Software Limited ("Open Objects") (the "Acquisition")
for up to GBP5.2 million. The acquisition is in line with Idox's
target of achieving GBP100m of revenues at sustainable margins in
the short to medium term, through a combination of organic growth
and acquisitions.
Reasons for and benefits of the Acquisition
Open Objects provides digital services for the public sector
specialising in social care and health. It is a market leader in
the provision of adult social care and family services software and
services to local authorities and also supplies health bodies and
Third Sector organisations in the UK. Its customers include around
60% of the top tier Local Authorities in England including
Manchester City Council, Kent County Council and the London Borough
of Hackney.
Open Objects delivers a wide range of managed cloud services
including Information, Advice and Guidance Hubs, Social Care
Marketplaces, Special Educational Needs Hubs, Online Care
Assessments and Practitioner Portals. Its SAAS solutions provide
innovative search and database-driven websites.
The Acquisition supports the Group's strategy of extending its
public sector domains and expanding its delivery of digital
services across all areas of local government. Idox has a limited
existing presence in social care (in document management and
workflow) and this acquisition is expected to enable the Group to
increase significantly its market share in this important domain.
Overall, it will enable the Group to offer an increased range of
value enhancing services to all its customers.
The Open Objects business will be fully integrated into Idox and
rebranded in line with the Group's strong integration track record.
The business, which employs 36 staff, will remain based in
Cambridge and be managed by its existing team. For its financial
year ended 31 March 2016, Open Objects reported revenue of GBP2.9
million and an operating profit of GBP0.63 million, with EBITDA of
GBP0.63 million. Net assets were GBP0.78million and it is being
acquired on a debt free / cash free basis. The Acquisition is
expected to be earnings enhancing in the first full year of
ownership.
Richard Kellett-Clarke, CEO of Idox, commented: "The acquisition
of market leading Open Objects significantly enhances our existing
presence in the important social care domain. It supports our
strategy to extend our public sector domains as well as increasing
our capability to deliver digital services across all areas of
local government. It is expected to be earnings enhancing and to
support our target of achieving GBP100m of revenues in the short
term to medium term."
Terms of the Acquisition
The maximum total consideration for the Acquisition, including
deferred consideration, is approximately GBP5.2 million including
costs, and is to be paid using the Company's existing debt
facilities and the issue of new ordinary shares of 1 pence each of
the Company ("Ordinary Shares") to the vendors. Consideration
payable on completion comprised GBP2.4 million in cash and GBP1.2
million of new Ordinary Shares of the Company. Deferred
consideration of up to GBP1.6 million will be payable in cash upon
meeting specified revenue targets over the period of 12 months from
1 April 2017 to 31 March 2018. Any deferred consideration due will
be paid no later than 30 June 2018.
Pursuant to the Acquisition, 1,904,762 new Ordinary Shares have
been issued, based on the midpoint of the Bid and Offer prices at
the close of trading on 22 July 2016, the latest practicable date
prior to completion. Application has been made to the London Stock
Exchange for the 1,904,762 new Ordinary Shares, which will rank
pari passu with the existing Ordinary Shares in issue, to be
admitted to trading on AIM and admission is expected to become
effective on or around 29 July 2016.
Following the issue of the new Ordinary Shares, the Company's
total issued share capital is 364,012,063 Ordinary Shares. The
Company holds 3,011,219 Ordinary Shares in treasury. Therefore the
total number of Ordinary Shares in issue excluding shares held in
treasury is 361,000,844
The above figure of 361,000,844 Ordinary Shares may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the FCA's Disclosure and Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR").
-ends-
Enquiries:
Idox plc +44 (0) 870 333 7101
Laurence Vaughan, Chairman
Richard Kellett-Clarke, Chief Executive
Jane Mackie, Chief Financial Officer
N+1 Singer (NOMAD and Broker) +44 (0) 20 7496 3000
Shaun Dobson
Liz Yong
MHP (Financial PR) +44 (0) 20 3128 8100
Reg Hoare/Andrew Leach/Charlie Barker
About Idox plc
Idox plc is a supplier of specialist document management
collaboration solutions and services to the public sector and
increasingly to highly regulated asset intensive industries around
the world in the wider corporate sector.
Its Public Sector Software Division is the leading applications
provider to UK local government for core functions relating to
land, people and property, such as its market leading planning
systems and election management software. Over 90% of UK local
authorities are now customers. The Division provides public sector
organisations with tools to manage information and knowledge,
documents, content, business processes and workflow as well as
connecting directly with the citizen via the web, and providing
elections management solutions. It also supplies in the UK and
internationally, decision support content such as grants and
planning policy information and corporates compliance services.
The Engineering Information Management Division delivers
engineering document control, project collaboration and facility
management applications to many leading companies in industries
such as oil & gas, architecture and construction, mining,
utilities, pharmaceuticals and transportation in North America and
around the world.
The Group employs over 660 staff located in the UK, the USA,
Canada, Europe, India and Australia.
For more information see www.idoxplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEANXSADKKEFF
(END) Dow Jones Newswires
July 26, 2016 02:01 ET (06:01 GMT)