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(Sharecast News) - Idox announced the acquisition of UK-based social care software provider Trojan Consultants, which trades as Plianz, for an initial cash consideration of £7.65m on Tuesday, with a potential uplift to £7.9m depending on revenue performance over the next 12 months.
The deal would be funded from existing resources and aligns with Idox's strategy to grow its public sector software business.
Plianz, which operates across two UK sites and employs 18 staff, delivered around £2.5m in revenue for the year ended 31 March, with approximately 90% of that being recurring.
The business reported adjusted EBITDA margins of 25% and is expected to benefit from scale and integration synergies under Idox ownership.
Idox said the acquisition would broaden its presence in the social care market, particularly in the financial management of money and estates for vulnerable individuals.
The AIM-traded firm added that the deal would enhance its product set and market reach, with existing Plianz management expected to remain in place to support future growth.
"The strategic acquisition of Plianz strengthens our existing social care offering and continues to build on our strong public sector software capabilities," said chief executive officer David Meaden.
"This expansion of the Idox solution in the social care sector is a great development for us as a business, broadening our capabilities and continuing to enhance the expertise and solutions we provide for this critical sector.
"We look forward to welcoming the Plianz team to Idox and are confident that the combination will be accretive, driving increased value for all stakeholders."
At 1353 BST, shares in Idox were up 0.36% at 56.4p.
Reporting by Josh White for Sharecast.com.
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