* Co looking for acquisitions in 10-15 million sterling revenue range
* Still interested in parts of Capita's IBS unit
By Paul Sandle
LONDON, July 7 (Reuters) - AIM-listed software firm IDOX, whose main customer is local and regional government, said on Tuesday it was on the lookout for acquisitions, but prices needed to come down to better reflect market conditions.
"We follow or track a large amount of opportunities but of the one or two that come to fruition the EBITDA multiples quoted are still surprisingly high," Chief Executive Richard Kellett-Clarke said in an interview.
"We are cautious about overpaying in this market, but we would be most disappointed if we don't do (an acquisition) in the next 12 months."
He said sellers were looking for multiples around 8 times, against the 7 times he thought fair value for a company with a high proportion of recurring revenue, ideally in the 10-15 million pounds range, and which was a very good strategic fit.
IDOX could be interested in buying the revenues and benefits part of Capita Group's IBS OPENSystems software business, he said. Britain's competition regulator said last month that Capita must sell part of the business it acquired for 78 million pounds ($127 million) last year.
"We've already said publically were the IBS business to come up for sale it's an area that would interest us," he said. "It depends on what exactly they would sell."
Chairman Martin Brooks said IDOX's contract book, weighted toward the second half, gave him confidence in the turnout for the year, despite revenue falling 3 percent in the first half.
"We are on track to do market guidance this year," he said. "We are increasingly doing larger, more complex contracts and that is changing the pattern of how the year rolls out."
The company is paying its first interim dividend, of 0.08 pence a share.
"We are still an aggressive acquirer, but shareholders would appreciate a bit of income and we are confident on the outturn," Brooks said. ($1=.6161 Pound) (Editing by Jon Loades-Carter)