The £20.5 million acquisition is Ideagen’s third this year
Ideagen plc, the UK-based, global software firm, today announced the acquisition of Morgan Kai Group Ltd, a leading Audit Management software provider to both public and private sector organisations.
With operations in Leeds, Yorkshire, and Chicago, Illinois, Morgan Kai Group Ltd currently generates £5.3m in revenue with £3.2m recurring. The organisation adds more than 370 clients including the UK National Audit, Investec, the New York Stock Exchange, Shell, Bombardier and Blue Shield to Ideagen’s existing customer base.
Morgan Kai Group’s product is a leading Internal Audit application in the form of ‘MKInsight’. The software is used across a number of highly regulated vertical markets including Public Sector, Banking and Finance, Engineering, Healthcare and Energy.
Ben Dorks, Ideagen CEO, said: “Morgan Kai is a profitable and growing software company that has developed a leading internal audit product in MKInsight.
“The addition of MKInsight to the Group doubles our existing internal audit business and provides scale, enhanced technology and a strong competitive position in this market.
“The acquisition is also in line with our US growth strategy and strengthens our position as a net exporter as more than 77% of Morgan Kai’s customers are based internationally, with 28% across the United States.
“This is an exciting acquisition and one that is immediately earnings enhancing for the Ideagen Group.”
David Hornsby, Executive Chairman of Ideagen, said: “Morgan Kai is an extremely valuable addition to the Group and is in line with our strategy of acquiring GRC business that have strong IP and growing recurring revenues.
“Internal Audit has represented a core market for Ideagen since the acquisition of Pentana in 2013 and the addition of MKInsight to our product portfolio will enhance our scale and capability and provide a strong platform for continued growth globally.”