Thu, 10 Feb 2022 | BUSINESS SALE
Compliance software firm Ideagen has continued its acquisition drive with the takeover of email management services company MailManager, its first major deal of the year. The acquisition is potentially worth up to £29.2 million, representing approximately a 5.7x multiple of MailManager’s annualised recurring revenue of around £5.1 million.
The acquisition will involve a £26.4 million up-front cash consideration along with a £2.8 million deferred conditional earnout. The deal will be funded using Ideagen’s existing resources and is the first takeover the company has completed since its £103.5 million equity fundraise in December. Proceeds from this fundraise will be uses to finance its acquisition pipeline and future growth.
MailManager has a broad range of clients, with a particularly strong presence in the architecture, engineering and construction markets, which Ideagen sees as offering cross-sell potential. MailManager’s software can be integrated into existing IT infrastructures and helps clients to manage emails, with the aim of improving efficiency, collaboration and compliance.
Ideagen forecasts that the company will benefit from the operational leverage the group provides, enabling it to achieve EBITDA margins in line with wider group margins inside the first full financial year post-deal. Ideagen says it will integrate the business into its Collaboration division.
Ideagen CEO Ben Dorks said that MailManager “has a resilient business model, a quality customer base, a strong team and outstanding technology.”
He added: “MailManager joins our growing suite of leading collaboration software, enhances our ARR base and has a strong presence in key end markets where we expect to be able to drive group-wide growth.”
“Our mission is to help customers effectively navigate highly regulated environments through great software and we look forward to making further complementary acquisitions from our pipeline in due course.”
Find businesses for sale here.
If you are looking for an exit, We can help!
Opportunity to acquire a well-established sole practitioner accountancy practice in Scotland, offering a loyal client base and strong reputation.
Two-partner accountancy firm available for acquisition, strategically positioned in the M25 North and East Anglia regions.
This established accountancy practice offers a strong client base with 280 non-audit limited companies and uses leading software like Xero for streamlined operations.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.