Acquisitions continue for IDOX

AIM-listed IDOX has made its second acquisition in a week with the purchase of CTSpace, a business in the engineering and construction sector which provides document management.

The deal, for £11.6 million, follows on from its compliance buy of UK-based Interactive Dialogues and Interactive Dialogues NV in a transaction worth £1.9 million.

Headquartered in London, CTSpace supplies document management and collaboration workflow services and is said by software and services business IDOX to complement its McLaren Software business, a company acquired in December 2010.

Richard Kellet-Clarke, chief executive officer of IDOX, comments: ‘With CTSpace, and the prior acquisition of McLaren Software, we are well on our way to building a global engineering document management and control operation.

‘We are confident that this business will match the scale and performance of our UK local authority business, which continues to grow.’

Kellet-Clarke says the deal brings developed and operational software-as-a-service (SaaS) offerings in India and Belarus.

CTSpace had reported revenues of £12.7 million and pre-tax profits of £1.3 million for the year to date 31 December 2010.

Funding for the deal will come from a new term and revolving credit facility through its existing provider Lloyds Banking Group.

Simon Sweeney, strategic debt solutions director for Lloyds Banking Group’s Corporate Markets, adds: ‘IDOX has a robust business model and an impressive track record of successfully integrating acquired businesses, and this is a logical step in its expansion plans.’

IDOX’s 2011 M&A activity deals follows on from a busy 2010 for the company when it completed four acquisitions worth £11.2 million.

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital.

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