4 May 2010 – acquisition

The group has acquired Grantfinder Limited, a provider of value-added databases, for £3.3m in cash.  This is a very good acquisition for the group as it now has a market leading position in this area and combining it with IDOX’s existing J4B operation will generate significant synergistic benefits.  The acquisition should be earnings enhancing immediately and although we are leaving forecasts unchanged for the moment, the shares still look excellent value on a prospective p/e ratio of 7.2x.  BUY.