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Ideagen - Acquisition of Huddle
- Published:
23 Dec 2020 -
Author:
Andrew Darley -
Pages:
3
Ideagen has announced its largest acquisition to date, acquiring Harmony Holdings UK Ltd for gross cash consideration of £28.1m (none deferred). Harmony’s product, Huddle, provides SaaS-based secure content collaboration and workflow solutions across highly regulated sectors such as accountancy and government, and will complement Ideagen’s Document Collaboration and Compliance product suite (“PleaseReview”). Acquiring at an attractive 2.7x EV/ARR, (compared with >3.5x historically), we lift FY22 forecasts in line with guidance of £11m (+16%) revenue and £3.5m (+14%) EBITDA, leading adj. dil. EPS up +13%, impressive in context of the 9.9% dilution from the £49m placing which will accommodate this acquisition and more. The board is spending the placing proceeds wisely and we fancy there is more to come. 280p reiterated and we look forward to further canny additions to the solution set.