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Ideagen Share Price Rallies on Acquisitions of Audit Analytics and Ai XPRT

Updated: 27 Oct 2021

The share price of Ideagen (LON: IDEA) rallied Wednesday morning after it announced the acquisitions of Audit Analytics and Ai XPRT.

“The Acquisitions bolster Ideagen's position as the audit and advisory system of choice to the compliance industry, accelerate AI functionality across the Ideagen portfolio and increase Annual Recurring Revenues (ARR),” stated Ideagen.

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Ideagen has agreed to pay an initial cash consideration of $44.9m for Audit analytics, with a further earnout of $5m in cash if it achieves an ARR of $13m within 24 months.

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Ives Group Inc, which trades as ‘Audit Analytics,' was established in 2000 and has customers, including BDO, RSM, PwC, Bloomberg and the SEC. Ideagen said Audit Analytics is highly complementary to its existing Pentana Audit product suite.

Regarding Ai XPRT, Ideagen has paid an initial £2m with an additional earnout payment of up to £4m on the second anniversary of completion, subject to specific performance criteria.

Audit Xprt Limited, trading as ‘Ai XPRT,' provides end-to-end B2B solutions to the FinTech and RegTech sectors, with Ideagen stating that Ai XPRT can reduce compliance costs by up to 90%. 

Ideagen said it will fund the total consideration for the acquisitions from existing resources. The purchase of Audit Analytics is expected to be completed in the next 3 working days, and the addition of Ai XPRT will close on 21 October.

Ben Dorks, CEO of Ideagen, said: “Today's announcement highlights accelerated execution of our M&A growth strategy. With the acquisitions of Audit Analytics and Ai XPRT, Ideagen has enhanced its position as the only end-to-end platform for audit and compliance and accelerating the roll-out of our AI capabilities. We've also significantly increased our current ARR and, with our integration playbook, will achieve increased visibility of revenues and quality of earnings.”

Ideagen shares have risen over 6% to 285p following the announcement. 

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