Ideagen acquires Irish software provider Scannell Solutions

Ideagen acquired Irish software-as-a-service provider Scannell Solutions for a total cash consideration of £3.5m on Monday.

The AIM-listed outfit anticipates the acquisition will be earnings neutral in its current financial year, but expects Scannell's addition will contribute €300,000 in additional EBITDA in the first full year of ownership as a result of the realisation of identified synergies.

Ideagen told investors the acquisition of Scannell, which generates approximately €1m in annual revenues and is breakeven, supports the group's "product roadmap" providing the technology and content to accelerate its strategy.

Ideagen will pay £3m up front for Scannell, funded from its existing cash reserves and debt facility, with a further £500,000 to be deferred for 12 months.

Executive chairman David Hornsby said: "Scannell is a valuable addition to Ideagen and is in line with our strategy of acquiring GRC businesses that have strong IP and recurring revenues."

"EHSQ is a fast-growing market and the acquisition will significantly enhance our product and market position."

As of 0900 GMT, Ideagen shares had dipped 1.20% to 124p.