Idox to buy Malta-listed 6PM Holdings

Idox, a supplier of information management solutions, has made an offer to buy Malta-listed 6PM Holdings, an IT health solutions company, for £18.46m partly in cash and shares.

The company is to raise £20.5m through a share placing of 1p each, by way of a bookbuild on Wednesday, with broker Nplus1 Singer acting as bookrunner. Shares are expected to be admitted to trade on 26 January.

The company said the acquisition is expected to be completed by 3 February, and will expand its presence in the health market while broadening its product offering and customer base.

The acquisition, which is expected to be earnings enhancing from 2017, is also in line with the company's target of making £100m of revenue at sustainable margins in the short to medium term.

Idox’ chief executive, Andrew Riley said: "The acquisition of 6PM is in line with our strategy of becoming a broader public sector provider and is expected to deliver a wide range of potential benefits - significant expansion in the large health and social care market, important enhancements to our digital services platform, and exciting opportunities to cross sell and derive operational synergies.

"It also plays very well to the public sector efficiency and cost saving agenda and the overall focus of our business on serving the public sector."

Shares in Idox were down 8.75% to 63.88p at 0856 GMT.