Ideagen Plc is a new company on our radar and of interest because it operates in the areas of data capture, enterprise content management (ECM) and compliance, provided via the SaaS model or on premise. Given its disruptive impact on the market SaaS is of obvious interest, as is data capture and compliance due to the deluge of data coming through from multiple sources. However, given the level of acquisitions within the ECM space we wonder whether Ideagen can offer anything to differentiate itself and prosper against the might of vendors like OpenText (who partners with SAP), Oracle’s Stellent, or the likes of Autonomy.
Nevertheless, the company has just issued an interesting set of preliminary results for the year ending 30 April 2011. It achieved a 133% increase in revenue (to £2.25m), albeit from a low starting point. While some of this was due to acquisitions, organic growth came in at 40%. It has recurring revenues of £1.7m but it looks like this is primarily from maintenance rather than SaaS-related revenue. Two deals signed during the year had a combined value of £900,000 and are cited as a sign that its deal sizes are increasing as a result of its acquisitions. (Datum International acquired Ideagen and Root 3, and earlier this year company under the Ideagen banner). It is planning growth through further acquisitions in the document and content management spaces, as well as organically via a vertical market focus.
We have not had a briefing with Ideagen as yet so are not familiar with its strategy and its points of differentiation but its results are healthy and it expects to move up to the AIM market in calendar 4Q 2011 so it will be one to follow up on.
