REG - IDOX PLC - Acquisition

IdoxAnnouncement

03/10/2022 07:00

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RNS Number : 4528B  IDOX PLC  03 October 2022

3 October 2022

Idox plc

("Idox" or "the Group")

 

Acquisition

 

Idox acquires LandHawk, a land mapping software & GIS data business

 

Idox plc (AIM: IDOX), a leading supplier of specialist information management
software and solutions to the public and asset-intensive sectors, is pleased
to announce the acquisition of LandHawk Software Services Limited
("LandHawk"), a UK based, cloud-native land mapping software and geospatial
information services (GIS) data business.

 

Highlights

 

·      LandHawk has a growing presence in the commercial sector in land
sourcing and provision of GIS data, specialising in the expanding UK renewable
energy industry.

 

·      Acquiring LandHawk further enhances Idox's GIS software, cloud
and data capabilities following the acquisitions of Aligned Assets, thinkWhere
and ExeGesIS in 2021.

 

·      Valuable opportunity to expand Idox's client base as well as
cross sell into Idox's existing local authority clients to assist in managing
their land assets.

 

Consideration

 

The initial cash consideration for the acquisition is £1.1m from Idox's
existing resources, with a further £0.4m of deferred equity consideration to
be issued 18 months post transaction.

 

LandHawk

 

Based in the UK, LandHawk allows clients to identify off-market land
opportunities effectively and efficiently by bringing together geospatial
intelligence in a user-friendly cloud-native software solution. Whilst
allowing clients to complete development feasibility studies, LandHawk also
provides GIS data directly to clients for use in their own applications,
alongside a managed service to support clients in sourcing off-market land.

 

LandHawk's client base provides new market opportunities for Idox and is a
complimentary extension of its existing local authority land and property
base. The business was established in early 2020 by GIS specialists and has
made good progress in the renewable energy and civil engineering sectors.
Furthermore, LandHawk's market offerings add to Idox's existing GIS offerings
across planning, address management, GIS data management, and management of
public rights of way, historical sites, and environmentally protected areas.

 

Founder and Director Tim Hughes will join Idox and continue to lead and
develop the LandHawk business within the Idox Group.

 

Further strengthening Idox's GIS credentials

 

The GIS sector is an attractive, high growth grouping of markets and end
customers that are increasingly seeking to utilise geo-spatial data via
software products and services to better assess risk and improve efficiencies.
Idox has a strong heritage in land and property with its existing
market-leading Uniform and Idox Cloud offerings which manage planning,
building control and public protection across the UK's Local Authorities.

 

The acquisition of LandHawk provides Idox with the opportunity to further
enhance the Group's GIS offerings, bringing a land mapping software solution
with associated data and consultancy services from a skilled team of
experienced GIS software experts. With appropriate additional investment from
the Group, revenue growth potential is anticipated in both LandHawk's existing
commercial land sourcing markets, and Idox's existing local authority land
& property markets.

 

The acquisition is expected to be marginally loss-making in its first year and
earnings enhancing thereafter as the Board believes there is scope to deliver
attractive profit growth over the medium term through expansion of offerings
and growth into commercial and local authority markets.

 

David Meaden, Chief Executive Officer, said:

 

"We have been in dialogue with LandHawk over the past 12 months and have been
impressed with the quality of their software, market offerings and people. We
are excited by the opportunity to combine LandHawk's impressive technology
with Idox's deep expertise in UK Land & Property and GIS data. We
collectively see a strong proposition for growth into commercial and public
sector use-cases across land sourcing, assessment and management."

 

"The integration of LandHawk, coupled with the acquisitions of Aligned Assets,
thinkWhere and ExeGesIS, places Idox in a strong position to capitalise on the
growth of the UK's location data market and lead the market in software
solutions. This transaction will provide LandHawk with immediate support to
its business and products to continue to expand its offerings and grow its
customer base across both commercial and local authority markets."

 

 

For further information please contact:

 

 Idox plc                                                  +44 (0) 870 333 7101

 Chris Stone, Non-Executive Chairman                       investorrelations@idoxgroup.com

 David Meaden, Chief Executive Officer

 Anoop Kang, Chief Financial Officer

 Peel Hunt LLP (NOMAD and Broker)                          +44 (0) 20 7418 8900

 Paul Gillam

 Michael Burke

 James Smith

 MHP Communications                                        + 44 (0) 203 128 8276

 Reg Hoare                                                 idox@mhpc.com

 Ollie Hoare

 Matthew Taylor

 

 

 

 

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