Taunton, 8 August 2016 - Covalent Software Ltd has been acquired by Ideagen Plc, the UK AIM listed provider of information management software to regulated industries.
For Covalent the deal provides significant future growth opportunities in its core financial and public services markets as well as opportunities for the enlarged group to expand its governance, risk and compliance (GRC) presence in healthcare, local government, finance and banking.
A specialist provider of corporate governance, compliance and performance management software, Covalent is based in Taunton, Somerset, employs 37 staff and has approximately 200 customers generating approximately £2.2m of revenue.
Covalent CEO, Peter McHugh, stated: "Becoming part of Ideagen Plc enhances our ability to deliver our best in class governance and performance management software to help our customers modernise business processes and deliver efficiencies. Ideagen, as a leading provider of quality, safety, audit and risk management software, represents the ideal vehicle to take our business forward. The future for Covalent customers and staff is very bright."
Ideagen, listed on the Alternative Investment Market (AIMs), currently has over 250 staff based around the UK, the US and Dubai not including its global network of partners. The acquisition of Covalent will enhance Ideagen’s workforce to over 300, expanding Ideagen’s Research & Development, support and sales functions.
Ideagen CEO, David Hornsby, said: "I am delighted to announce the acquisition of Covalent, which is a valuable addition to the Group and is in line with our strategy of acquiring business that have strong IP and healthy recurring revenues.
"Covalent has established an extremely compelling value proposition and brings to the Group a complementary cloud solution, a talented workforce and long-term customer relationships which further consolidate our position in the NHS, local government and financial services verticals."
The deal marks a successful exit for Covalent’s previous funders. Technology Venture Partners LLP’s Nick Simmonds said: "It has been a pleasure working with Peter McHugh and the team at Covalent Software and we are delighted with the way in which Covalent has developed into a technology leader in the GRC space. We wish the company every success for the future."
About Ideagen Plc
Ideagen Plc is a supplier of compliance based Information Management software with operations in the UK, United States and Middle East. The Group specialise in eGRC (Enterprise Governance, Risk and Compliance) and Healthcare solutions for organisations operating within highly regulated industries.
As authors of a portfolio of high quality software products, Ideagen is able to provide complete content lifecycle solutions that enable organisations to meet their Regulatory, Quality Compliance and Safety standards, helping the world’s leading brands improve operational performance, avoid unwanted surprises and maintain high integrity.
The Group has shown strong growth, both organically and through strategic acquisitions, and is listed on the AIM market of The London Stock Exchange (Ticker: IDEA.L).
Ownership: UK AIM public limited company – Ideagen Plc – IDEA
Accreditations: ISO 9001, 14001 & 27001 certified
High Growth: 52% Revenue growth in last financial year
Over 250 employees: 40% of which work within our R&D environment
- 2,200 Companies: Using the Ideagen suite of products including 250 hospitals in the UK and US & 300+ Aviation organisations globally
1993: Year of formation
Ideagen Plc - Commercial Thought Leaders
Covalent, a Taunton based software company established in 2003, has developed and commercialised a proprietary GRC platform which has gained significant traction in the UK Public Sector.
Covalent currently employs 37 staff and has approximately 200 customers across the NHS, Local Government, Housing Association and Financial Services sectors.
Covalent has recently released a Cloud Based version of its software following approximately 40 man years of development which has driven strong growth in recurring revenues.
About Technology Venture Partners
Technology Venture Partners is venture capital firm based at the Bristol and Bath Science Park and investing in emerging technology companies in the South of the UK. TVP invests across a broad range of technology sectors including enterprise and infrastructure software, communications and networking, electronics, advanced engineering and materials, medical technology and healthcare IT. A number of the TVP portfolio companies were originally spinouts from leading universities and research institutions located in the South of the UK. www.techvp.co.uk