IDEA.L Regulatory News (IDEA)

Ideagen plc

("Ideagen" or the "Company")

Acquisition of MSS Management Systems Services Ltd

Ideagen PLC (AIM: IDEA), a leading supplier of Compliance based Information Management solutions, is pleased to announce that it has acquired MSS Management Systems Services Ltd, (MSS) a leading supplier of Emergency and unscheduled software care solutions to the NHS.

Acquisition Rationale

MSS is the developer and owner of 'Patient First', an Information Management Solution which supports the everyday practices of NHS Accident & Emergency (A&E) departments. Patient First provides the end user with an intuitive application that delivers real-time clinical management of patients in the acute and minor injuries environment whilst supporting the delivery of the complex information needs of NHS Trusts.

There is a growing need to improve data collection and clinical processes within A&E departments to support KPIs and national quality standards. Patient First will be integrated into Ideagen's existing E-Casenote and Order Communications solutions to provide a robust and scalable platform with access to real time information showing where a patient is and future requirements for the A&E department and NHS Trust.

Patient First supports some of the largest A&E departments across the country and manages approximately 1.8 million attendances in A&E departments per annum across 10 Acute Trusts in England. For the 12 month period ended 31 March 2013, MSS generated revenues of approximately £500k with recurring maintenance revenues of approximately £300k and earnings before interest and tax of £144k. MSS had net assets of approximately £150k as at 31 March 2013. Cash at completion was approximately £176k.

Financial Terms of the acquisition

The initial net cash consideration for the acquisition of MSS is £589k with a further £50k deferred for 12 months. Additionally, up to a further £540k cash may be payable on certain revenue targets being achieved in the period to 30 April 2014. The maximum amount would be payable on revenues achieved in the 10 month period to 30 April 2014 of £1.5m. The acquisition will be funded from Ideagen's cash resources and will be immediately earnings enhancing.

David Hornsby Chief Executive said: "With total attendances at hospital A&E units in England having risen every year for the past eight years, medical organisations have voiced concern about what they believe is an unsustainable rise in attendances and admissions. Ideagen has identified that emergency care services need more robust systems to manage this increased workload. Patient First, together with our existing NHS Information Management software, will enable us to help deliver the transformation required."