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09 Mar 2021 | 11:18

Ideagen buys compliance software firm Qualtrax in $14.9m deal

(Sharecast News) - Regulatory and compliance software company Ideagen announced the acquisition of Qualtrax on Tuesday, to further extend its presence in the United States, for net cash of $14.9m (£10.73m). The AIM-traded firm described Qualtrax as a "fast-growing" supplier of quality, health, safety and environmental (QHSE) compliance software to a number of highly-regulated industries, including laboratory services, manufacturing and aerospace.

It said Qualtrax boasted 350 clients, including Walmart, the District of Columbia Office of the Chief Medical Examiner, the Colorado Bureau of Investigation, and the Arkansas State Crime Lab.

Ideagen said Qualtrax currently employs 40 people from its office in Blacksburg, Virginia, which would become Ideagen's new US headquarters.

Qualtrax's current annualised recurring revenue book was about $5.1m, of which over 90% was for software-as-a-service (SaaS).

The board said consideration was payable in cash on completion, and calculated on a cash-free, debt-free basis, amounting to $14.9m, of which $1.65m would be held in escrow for 12 months following completion.

It said the consideration would be funded from Ideagen's existing resources.

"I am very pleased to announce the addition of Qualtrax to our group and the expansion of our presence in the United States," said chief executive officer Ben Dorks.

"Qualtrax brings a high quality customer base, strong growth, a high level of recurring revenue and also bolsters our platform for expansion in the US."

At 1055 GMT, shares in Ideagen were up 1.08% at 274.93p.
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