Avisen, the AIM-listed performance management group, has acquired 100% of UK-based IBM Cognos specialist Inca Holdings, for the equivalent of R49 million. The acquisition is Avisen's fourth since listing in November last year.
Avisen listed after acquiring South Africa's Harvey Jones. It has since acquired InfoCube, performance management consultancy Wexner Global and South Africa's Quadrum Consulting.
Avisen listed at 5p a share and is now trading at just under 16p, giving it market capitalisation equal to R302 million.
Inca Holdings is a leading IBM Cognos reseller, the third and largest IBM Cognos specialist to join the group. Avisen is now the largest IBM Cognos solution and service provider in the UK and EMEA (Europe, Middle East and Africa) regions.
The acquisition of Inca Holdings has been settled by the issue of 22.95 million new ordinary shares at a price of 15.25p.
Inca is a leading provider of planning, reporting and forecasting solutions for organisations across all industry sectors. It has built up a comprehensive sales, customer support and professional services team, and serves more than 500 customers across the UK and Europe.
The company reported revenues of more than 6 million stirling in 2008.
Chris and Jayne Kerrison, co-founders and senior executives of Inca, join Avisen's senior management team.
"This acquisition is in line with our stated strategy to expand the scale and depth of the company's software, support and consulting service capabilities, as well as adding intellectual property assets with every acquisition," says Marcus Hanke, CEO of Avisen.
"Inca's support division will enhance our support services, with recurring revenue attributed to support services in excess of 2 million pounds for the year ended 28 February 2009. Its planning software will also enable us to bring a high-value planning application to the mid-market. As such, we expect the acquisition to be earnings-enhancing for the current financial year."
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