Ideagen acquires IPI Solutions
Ideagen Plc, the Nottingham-based information management software provider, has announced the acquisition of IPI Solutions Ltd for a net consideration of £5.54m.
Mansfield-based IPI Solutions has 400 customers such as GE Aviation, Sikorsky, Augusta Westland and Meggitt and will help to consolidate Ideagen’s position in key vertical markets.
A “profitable and cash generative” software company, IPI has developed Visual IP, a popular software application for quality and compliance reporting. The software already integrates with Q-Pulse, Ideagen’s flagship quality and safety management application, and the companies already had customers in common.
The acquisition of IPI is coherent with Ideagen’s strategy of acquiring businesses with strong IP and healthy recurring revenues. David Hornsby, Ideagen’s CEO, said: “IPI has established an extremely compelling value proposition and brings to the Group a complementary solution, a talented workforce and long-term customer relationships that further consolidate our position in the Aerospace and Defence, Complex Manufacturing and Life Science verticals.”
Founded in 2005, IPI employs 17 staff and generates around £1.9m of annualised revenues of which £1.4m are recurring. EBITDA for the financial year ended 30 June 2016 was £600k and is expected to increase to £800k by FYE April 2018 as significant contracts are delivered and revenues are recognised.
Mr Hornsby added: “IPI has outstanding IP that is already integrated with Ideagen Group's electronic quality management application, Q-Pulse, and extends our reach into manufacturing processes in three of our target verticals. We expect the acquisition to be earnings enhancing immediately."
The purchase is Ideagen’s eleventh in nine years and its third in 2016 following the earlier acquisitions of Covalent Software and Logen.