Ideagen swoops for Somerset rival in £3.6m deal

Ideagen, the Ruddington supplier of information management software to highly regulated industries, has bought Covalent Software for £3.6m.

Covalent is software company that has developed a leading Governance, Risk and Compliance (GRC) cloud-based software platform primarily for the public sector and financial services markets.

Based in Taunton, Covalent employs 37 staff and has approximately 200 customers generating around £2.2m of revenue annually of which £1.9m is recurring.

David Hornsby, CEO of Ideagen, said: “Covalent will be a valuable addition to the Group and is in line with our strategy of acquiring business 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.”