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Idox Group (IDOX:LSE) the software, consulting and recruitment provider to the UK public sector, has agreed to acquire 11 long-term managed service contracts for the provision of land and property information solutions to UK Local Authorities from Macdonald, Dettwiler and Associates for 2.9 million Pounds. The acquisition will be funded from existing cash resources, with completion expected in April on novation of the contracts and transfer of support staff and infrastructure.
IDOX will take over provision of the on-going managed-services under the contracts, where initial implementation has been successfully completed. The agreements are part of the government's Local Authority Modernisation Programme and have estimated lifetime revenues of 7.2 million Pounds.
Their acquisition will significantly expand IDOX's managed-service, outsourcing and partnership offerings for local government, providing additional opportunities for contract extensions and cross selling into the new customer base.
IDOX's Chairman Martin Brooks said, "This acquisition is a considerable boost for our developing managed-services business and increases our long-term recurring revenues and market share in the land and property sector. It provides additional foundations on which we can build a substantial offering for local authorities that need to reduce costs and improve both efficiency and predictability through the use of long-term managed services."