TVP portfolio company, Covalent Software, has been acquired by Ideagen Plc, the UK AIM listed provider of information management software to regulated industries.

For Covalent the deal provides significant future growth opportunities in its core financial and public services markets as well as opportunities for the enlarged group to expand its governance, risk and compliance (GRC) presence in healthcare, local government, finance and banking.

The deal marks a successful exit for Covalent’s previous funders. TVP’s Nick Simmonds said: “It has been a pleasure working with Peter McHugh and the team at Covalent Software and we are delighted with the way in which Covalent has developed into a technology leader in the GRC space.  We wish the company every success for the future.”

A specialist provider of corporate governance, compliance and performance management software, Covalent is based in Taunton, Somerset, employs 37 staff and has approximately 200 customers generating approximately £2.2m of revenue.

Covalent CEO, Peter McHugh, stated: “Becoming part of Ideagen Plc enhances our ability to deliver our best in class governance and performance management software to help our customers modernise business processes and deliver efficiencies. Ideagen, as a leading provider of quality, safety, audit and risk management software, represents the ideal vehicle to take our business forward. The future for Covalent customers and staff is very bright.”

Ideagen, listed on the Alternative Investment Market (AIMs), currently has over 250 staff based around the UK, the US and Dubai not including its global network of partners. The acquisition of Covalent will enhance Ideagen’s workforce to over 300, expanding Ideagen’s Research & Development, support and sales functions.

Ideagen CEO, David Hornsby, said: “I am delighted to announce the acquisition of Covalent, which is a valuable addition to the Group and is in line with our strategy of acquiring business that have strong IP and healthy recurring revenues.

“Covalent has established an extremely compelling value proposition and brings to the Group a complementary cloud solution, a talented workforce and long-term customer relationships which further consolidate our position in the NHS, local government and financial services verticals.”