IDOX expands product range

9th Feb 2011 14:09

Public sector software supplier IDOX intends to buy LalPac for up to £2.6m in what will be an earnings enhancing deal. There will be an initial payment of £2.3m and a further £300,000 on the first anniversary of the completion of the deal - as long as certain conditions are fulfilled. LalPac should have £800,000 in the bank. LalPac provides licensing management software and services to 131 local authorities. The two companies have a similar customer base and there are cross-selling opportunities. The software helps in the licensing of taxis and gambling. LalPac has annual revenues of £1.5m, of which 85% are recurring. The completion of the deal requires clearance by the Office of Fair Trading. FinnCap forecasts that AIM-quoted IDOX will increase its profit from £7.8m to £10.5m in the year to October 2011. The broker expects at least three acquisitions this year. The forecast does not include any contributions from these potential acquisitions.