Microgen acquires Canadian software firm Primacy

Microgen announced the acquisition of Primacy Corporation from the Kelly Family Trust on Monday, for total cash consideration of CAD 5.6m (£3.4m).

The London-listed company said Primacy is a Toronto-based provider of software to the trust and fund administration market, and would be integrated into the Microgen Financial Systems business.

Primacy is the fifth acquisition by Microgen since December 2014 and continued the group's strategy of consolidation in the trust and fund administration market, which the board described as a “global niche” within the broader wealth management sector.

“These acquisitions provide Microgen with an increased client and recurring revenue base and complement the organic growth in Microgen 5Series revenues resulting in the Microgen Financial Systems business becoming increasingly focussed on trust and fund administration,” Microgen’s board said in a statement.

Primacy's revenue in the year ending 31 October 2016 was CAD 2m, with profit before tax of CAD 0.9m.

The gross assets at 31 October were CAD 1.2m, and it was anticipated that at completion there would be cash and net funds of approximately CAD 0.2m.

Microgen said the acquisition of Primacy was anticipated to be earnings enhancing in the current financial year, and it was funded through existing cash resources.

The company added that it expects to announce its preliminary results for the year ending 31 December 2016 on 8 March, which it had previously indicated.