Software company snapped up in £20.5m deal

Ideagen, the safety, risk and audit software solutions provider, has completed the acquisition of  Morgan Kai Group in a deal worth £20.5m.

Morgan Kai, based in Leeds, is a software company that has developed an Internal Audit Management product ‘MKinsight’. MKinsight is used by over 370 customers across a number of highly regulated vertical markets including public sector, banking and finance, engineering, healthcare and energy;

Morgan Kai, which currently employs 28 people, also has an operation in Chicago. Over 77% of its customers are international with 28% based in the US.

Ideagen noted that the acquisition is expected to be immediately earnings enhancing, contributing £2m additional EBITDA for the year ending 30 April 2020 following the realisation of £300,000 synergies.

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, the addition of MKinsight to our product portfolio will enhance our scale and capability and provide a strong platform for continued growth globally.”

Dave Irwin and Andy Miller from Sentio Partners advised Morgan Kai on the sale of the business.