Ideagen eyes £20m placing to fund further acquisitions

Ideagen announced its intention to raise £20m in order to fund further acquisitions by way of a conditional placing on Thursday.

The AIM-listed software firm will issue approximately 14.08m ordinary shares, representing roughly 6.9% of the company's current share capital, and make them available to institutional investors in the UK and Europe at a price of 142p each.

Ideagen intends to use the proceeds to assist it in the acquisition of a competing software provider in the UK and US, which the board estimates to have a current revenue run rate of £5.3m and an EBITDA run rate of £1.7m, as well as two further software-as-a-service acquisition targets, one in aviation and one in environmental health and safety, which were both said to have revenues of approximately £1m.

In addition to the placing, Ideagen also revealed it will increase its revolving credit facility with NatWest from £8m to £16m.

As of 1415 BST, Ideagen shares had dipped 0.47% to 147.80p.