Heineken, Emirates, Boeing and PwC services supplier completes £3.6m takeover of Taunton firm
Ideagen has acquired Covalent Software in a £3.6 million deal to bolster its cloud offering in the compliance and performance management services market.
Formed in 2003, Covalent is a leading cloud performance and governance management software vendor. It provides corporate and employee performance management and governance, compliance and risk management software solutions to both public and private sector organisations, including the financial services market.
Based in Taunton, Somerset, Covalent currently employs 37 staff and has approximately 200 customers. The acquisition from Covalent founder Peter McHugh and a venture capital firm is expected to be “immediately earnings enhancing”, said Ideagen, a G-Cloud supplier.
Ideagen CEO David Hornsby said: “Covalent is a valuable addition to the group and is in line with our strategy of acquiring businesses that have strong IP and healthy recurring revenues.
“Covalent has established an extremely compelling value proposition and brings to the group a complementary cloud solution offering, a talented workforce and long-term customer relationships, which further consolidates our position in the NHS, local government and financial services verticals.”
Ideagen currently has over 250 staff based around the UK, the US and Dubai, not including its global network of partners. The acquisition of Covalent will grow Ideagen’s workforce to over 300 and expand its research and development, support and sales functions.
Ideagen’s flagship software products include Q-Pulse, Pentana and Enlighten and the company provides key software and services for healthcare organisations in both the UK and abroad. Organisations using its products globally include Emirates, Boeing, PwC and Heineken.