Ideagen, a leading supplier of On-Demand Information and Compliance Solutions, is pleased to announce the acquisition of Proquis Limited ("Proquis"), a leading developer and supplier of compliance and quality management software to highly regulated industries. 

The acquisition is conditional on the Company obtaining approval from its Shareholders to grant the Directors authority to allot the Consideration Shares at a General Meeting convened for 9 January 2012 at 11.00 a.m. A copy of the Circular, Notice of General Meeting and Proxy Form will be posted to Shareholders today. A copy of the circular is attached to this post and available for download. 

Highlights of the acquisition: 

• Proquis is a leading provider of compliance and quality management software to highly regulated industries 
• Proquis has particular strength in the Aerospace & Defence, Healthcare, Energy and Complex Manufacturing markets
• Proquis is expected to add significant new clients, scale and competence to the existing Ideagen compliance business 
• In November 2011 Proquis won a landmark contract with the US Government Department of Veterans Affairs expected to be worth approximately USD10.6m in revenue over 5 years (the "VHA Contract") 
• Initial consideration of GBP1.04m with potential additional deferred consideration of up to GBP2.2m, all to be satisfied by a combination of cash and shares 
• Acquisition expected to be immediately earnings enhancing 
  

The Directors believe that the Acquisition will add value to Shareholders, strategically, financially and operationally and expect the Acquisition to be earnings enhancing. 

Commenting on the acquisition, David Hornsby, Chief Executive said: 

"I am delighted to announce the acquisition of Proquis as I believe it is an excellent business which will significantly enhance our existing compliance capabilities. Proquis has a talented team, a robust technology platform and an outstanding client base which we believe will strengthen Ideagen.  The commitment being shown by the vendors of Proquis to the enlarged business and to existing shareholders of Ideagen by electing to receive mainly Ideagen shares as consideration for the acquisition is extremely positive and underscores our belief that the acquisition will enhance our proposition. The focus on highly regulated industries is particularly attractive and I am excited about the prospects for the enlarged business."