Idox PLC - Reading, England-based management software provider - Buys UK based public sector software company Aligned Assets Holdco Ltd, for initial cash consideration is GBP7.5 million, increasing to a total maximum of GBP10.5 million.
Company feels the deal will be immediately earnings enhancing.
The deal could rise to GBP10.5 million comprising earn-out amounts of up to GBP1.5 million payable in cash and GBP1.5 million payable in equity over two years. The size of earn-out is dependent on progress against targets associated with retention of existing recurring revenues and winning new revenues.
The deal will be funded from existing cash.
"The acquisition of Aligned Assets will enhance Idox's market leading offering to local authorities in relation to the built environment and is in line with Idox's acquisition criteria of purchasing UK based, public sector focused businesses with strong internal IP. The product set of Aligned Assets is complimentary to Idox Cloud and will support future organic growth in this area," Idox explains.
Chief Executive David Meaden says: "This is a valuable acquisition for Idox that builds on our public sector software focused growth strategy. Having recommended Aligned Assets to existing customers to use alongside our own built environment software, the acquisition will enhance and optimise our current offering and is a natural fit."
Current stock price: 63.00 pence, up 3.3% on Monday
Year-to-date change: up 25%
By Paul McGowan; paulmcgowan@alliancenews.com
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Idox Group (IDOX)