Intelligent Environments Group Plc (IEN)
ISR viewIE has proven resilient to slower IT spending in the banking sector because its products are able to process applications for savings as well as credit products. Recurring revenues are now building rapidly which will not only generate profitable growth but also enable more ambitious strategic thinking.
Transformative deal
Intelligent Environments Group Plc | Download | Published on 07/07/2010Supplier of Internet banking software Intelligent Environment announced this week the acquisition of Documetric; a transaction that fundamentally alters the shape and direction of the business, as well as the composition of the board. Whilst Documetric isn’t much larger than IE, this is clearly a reverse takeover in both name and practice.
After a long period with little progress as a public company, IE had started to make real progress over the last few years but remains sub-scale as a public company. Alongside the commercial logic for the deal, perhaps the equally compelling rationale therefore is that it gives Parseq (as the merged entity is to be renamed) the critical mass it needs; the post-acquisition market cap will top £30m. We’ll have a more detailed write up of our views on the deal and revised estimates following a meeting with the new management team once the deal completed on 22 July.