The acquisition bolsters Ideagen’s position as the audit and advisory system of choice to the compliance industry
Ideagen, a leader in compliance software for highly regulated industries, announced the acquisition of the Ives Group Inc., trading as ‘Audit Analytics’. Audit Analytics was established in 2000 and is used every day to empower accounting, financial, and compliance professionals with the informative content critical to impact their regulatory work.
As a trusted source for research, data is collected, organized, and analyzed with rigor to support on-line market intelligence, due diligence and risk assessment tools for audit, corporate, regulatory, investment, accounting, and research professionals. With last reported revenue of $10.7m of which more than 99% was recurring, Audit Analytics provides more than 500 customers, including BDO, RSM, PwC, Bloomberg and the SEC, with powerful and unique data for better decision making. It also serves thousands of professionals globally from accountants to academia. Audit Analytics is highly complementary to the Group’s existing Pentana Audit product suite.
Ideagen is a leader in the $30 billion GRC software market, serving highly regulated industries such as life sciences, healthcare, banking and finance, and insurance. Ideagen’s software helps companies comply with regulation and manage risk. Ideagen has made 20 acquisitions to build its market leadership and announced the acquisition of Ai XPRT alongside the Audit Analytics transaction.
Ben Dorks, Chief Executive Officer of Ideagen, 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 agreed to pay an initial cash consideration of $44.9m with a further earnout of $5m in cash conditional upon achieving ARR of $13m within 24 months. The Board expects Audit Analytics to achieve double digit ARR growth and margins similar to those of the Group within 12 months of ownership. Audit Analytics recorded net income of $0.8 million for the year to 31 December 2020 and had net assets of $3.8 million as at that date.
Marks Baughan Securities served as financial advisor to Ideagen.
For more information on this transaction, please contact:
John Jacobs
+44 207.927.7464
jjacobs@marbau.com
Chris Rose
610.616.3298
crose@marbau.com
About Marks Baughan Securities
Marks Baughan provides investment banking services to growth companies. Our clients are software, technology-enabled services and data-intensive companies seeking shareholder liquidity or growth capital. We work tirelessly alongside our clients and excel at defensible positioning and disciplined processes that maximize shareholder value. Our professionals come from senior positions at bulge-bracket firms, giving our clients access to the relationships and experience that come from our years of interaction with the top executives and investors in companies in our fields. Our clients receive top-flight advice throughout any advisory relationship, because our boutique approach allows our senior advisors to stay deeply involved with each client on a continuous basis. No handoffs to junior staff. No preferential client relationships. No conflicts of interest.
For additional information on Marks Baughan, see www.marksbaughan.com.
About Ideagen
Ideagen is a leader in the $30 billion GRC software market, serving highly regulated industries such as life sciences, healthcare, banking and finance and insurance. Ideagen has made twenty acquisitions to build its market leadership.
For additional information on Ideagen, see www.ideagen.com.
About Audit Analytics
Serving more than 450 institutions and thousands of professionals globally, Audit Analytics provides corporate gatekeepers and stakeholders with unique data and insights. Through our online platform and enterprise data feeds, Audit Analytics is used every day to empower accounting, financial, and academic professionals with the informative content critical to impact their work. As a trusted source for research, our data is collected, organized, and analyzed with rigor by our expert team of researchers.
For additional information on Audit Analytics, see www.auditanalytics.com.