Ideagen buys InspectionXpert for up to $7m

5th Sep 2018 14:53

(Sharecast News) - AIM-listed Ideagen has announced the acquisition of digital inspection specialist InspectionXpert Inc (IX) for up to $7m.The consideration includes $5m payable on completion, $1m deferred for 12 months and an earn-out of up to $1m payable in December 2019 subject to the achievement of certain performance targets. It will be funded from the group's existing cash reserves and debt facility.IX, which has more than 1,000 customers, is a profitable and growing software as a service company that has developed a digital quality inspection solution for the advanced engineering and manufacturing sector.Ideagen said the deal - which is expected to be earnings-neutral this year and in the first full year of ownership - will contribute $0.7m additional earnings before interest, taxes, depreciation and amortisation, following the realisation of identified synergies.In addition, it said the acquisition supports its global growth strategy and consolidates its position within the fast-growing quality inspection market.Executive chairman David Hornsby said: "IX is a valuable addition to Ideagen and is in line with our strategy of acquiring GRC business that have strong IP and healthy recurring revenues. Increasingly OEMs are driving automated inspection initiatives through their supply chains in order to reduce costs and improve product quality. This acquisition further consolidates our position within the fast-growing quality market and strengthens our US presence.''At 1450 BST, the shares were down 1.1% to 155.70p.