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Ideagen - Aim, acquire, reload
- Published:
09 Dec 2021 -
Author:
Andrew Darley | Kimberley Carstens -
Pages:
8
Repeating the £49m war chest placing at 215p in December 2020, Ideagen has successfully completed a £103.5m placing at 270p in order to fortify the balance sheet to enable continuing acquisitions. Ideagen’s best of breed Governance Risk & Compliance suite has been created through both organic R&D and acquisition, generating 46% CAGR 2010-2022E. Following on from the trading update and successful Capital Markets Day, the group has clarified FY25 target of £200m ARR, delivered through 15% organic growth and continuing acquisitions. Given current proforma ARR of £86.3m, assuming 3.5 years @15% organic gives £141m, meriting c£60m acquired ARR, comfortably deliverable by the £100m placing (supported by £100m accumulated FCF to April 2025 delivered even without acquisition). We look forward to reviewing the model and target price as the acquisitions accumulate, currently only accounting for funds raised.