RegTechDeals

Listed software company Ideagen has swooped to acquire two fellow RegTech businesses.

Nottingham-based Ideagen, which specialises in compliance software, has snapped up US-based Audit Analytics, which was established in 2000 and provides regulatory tools for accounting, financial and compliance professionals.

The deal is for a potential £36 million, with £3.6m of that total dependent on performance.

The firm’s last reported revenues were $10.7m, of which more than 99% was recurring, from more than 500 customers including BDO, RSM, PwC, Bloomberg and the SEC.

Its last reported profits were around $800,000.

London-based Audit Xprt has also been acquired for an initial cash consideration of £2m with an additional earnout payment of up to £4m on the second anniversary of completion subject to certain performance criteria.

The startup provides end-to-end B2B solutions to the FinTech and RegTech sectors using advanced technology which Ideagen will use to accelerate its own product development roadmap. 

It has developed a platform to automate auditing of financial disclosure reports, compliance checking of documents and document review for due diligence.

RegTech 50 – UK’s most innovative compliance technology creators for 2021

The technology enhances AI capability across Ideagen’s Cloud Service architecture and is expected to support new functionality across all products in the medium term. The system is currently in active beta testing with Deloitte, AIA, and Barclays and the Board believes Ai XPRT can reduce compliance costs by up to 90%. 

Ideagen, which has reported 12 consecutive years of revenue and profit growth, recently secured a £100 million funding package for acquisitions.

Ideagen CEO Ben Dorks 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 has a presence in 150 countries and provides quality, audit and risk software to organisations operating in highly regulated industries. 

Its clients span sectors including aviation, financial services, life science, healthcare and manufacturing, and it has ‘centres of excellence’ in the UK, Europe, America, UAE and South East Asia.