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Continuing its acquisition spree (see IDOX’s Grantfinder acquisition cleared, IDOX takes on challenge with McLaren purchase, and IDOX votes for electoral management services business, local government software & services supplier IDOX has announced that it’s conditionally agreed to acquire LalPac Ltd for a gross consideration of up to £2.6 million.
According to IDOX, LalPac is one of the UK’s leading providers of licensing management software and services and supplies 131 local authorities covering the full range of licensing including Taxi, Private Hire, Gambling and General Licensing Functions. As such it seems to fit into IDOX’s focus on the “land, property and people” market in local government (though thinking about it... won’t anything to do with local government be related to ‘land, property and people’?)
Once again IDOX is acquiring using cash from existing resources. Once again, the acquisition is expected to be immediately earning enhancing. Once again, the company to be acquired has cash in the bank (expected to be £0.8 million at completion). And LalPac adds another £1.5 million (FY10) of revenues (to IDOX’s £31.3 million), of which more than 85% are recurring. Organic growth in its ‘core’ land & property business is proving hard to come by. Therefore, we expect IDOX to continue grow acquisitively as appropriate.
So if you’re a small, high margin, cash generating, high recurring revenue business focused on the local government market... watch out, IDOX is probably eyeing you up as we speak!
