Ideagen, a global supplier of GRC and information management software to organisations operating in highly regulated industries, announced acquiring Covalent Software Ltd in a £3.6m deal.
Founded in 2003, Covalent is one of the UK’s leading cloud performance and governance management software vendors. It provides Corporate & Employee Performance Management and Governance, Compliance and Risk Management software solutions to both public and private sector organisations including the financial services market.
Based in Taunton, Somerset, Covalent currently employs 37 staff and has approximately 200 customers. The acquisition from Covalent founder Peter McHugh and venture capital Investor Technology Venture Partners LLP is expected to be immediately earnings enhancing.
Ideagen’s Chief Executive Officer, 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 offering, a talented workforce and long-term customer relationships which further consolidates our position in the NHS, local government and financial services verticals.
“We believe the combination of Covalent and Ideagen will further boost the enlarged Ideagen Group, immensely strengthening our market position and further enhancing our product suite to provide an outstanding opportunity to leverage the growing risk and compliance market.”
Ideagen 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’s flagship software products include Q-Pulse, Pentana and Enlighten and the company also provide key software and services for healthcare organisations in both the United Kingdom and abroad. The company has a healthy customer base with over 2,200 organisations using its products globally such as Emirates, Boeing, PwC and Heineken.
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.”