Midlands-headquartered software group Ideagen plc has announced the acquisition of a profitable SaaS business in the US for up to $7 million.
Ideagen, which supplies information management software to highly regulated industries, said InspectionXpert Inc (IX) is “a valuable addition” to the AIM-listed group.
IX is a profitable and growing SaaS firm that has developed a digital quality inspection solution for the manufacturing and advanced engineering sector.
The California-based company employs 15 people and has more than 1,000 customers including the likes of Boeing, NASA and Virgin Galactica.
Ideagen will pay an initial sum of $5 million and two deferred payments of $1 million each subject to certain performance targets.
“IX is a valuable addition to Ideagen and is in line with our strategy of acquiring GRC business that have strong IP and healthy recurring revenues,” said executive chairman David Hornsby.
“Increasingly OEM’s are driving automated inspection initiatives through their supply chains in order to reduce costs and improve product quality.
“This acquisition further consolidates our position within the fast-growing quality market and strengthens our US presence.”