Alcidion Group (ASX:ALC) - Group Managing Director, Kate Quirke
Group Managing Director, Kate Quirke
Source: Alcidion Group
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Alcidion (ALC) has announced plans to raise $55 million and buy patient software specialists, Silverlink PCS Software
  • The ASX-lister will pay £30 million (A$55.5 million) for the Patient Administration System (PAS) providers, which services the UK NHS market
  • ALC explains the acquisition will take its market share within the NHS to around 26 per cent, as Silverlink looks after 38 NHS trusts
  • The healthcare technology business has received commitments to raise $30 million via a placement, with another $25 million to be raised via and entitlement offer
  • Alcidion places its shares in a trading halt ahead of the fundraise and acquisition news, with ALC securities last trading at 32 cents

Alcidion (ALC) has announced plans to raise $55 million and buy patient software specialists, Silverlink PCS Software.

The ASX-listed healthcare technology business will pay £30 million (A$55.5 million) in consideration for the Patient Administration System (PAS) providers.

It’ll also hand over another £3 million (A$5.6 million) if certain earn-out conditions are met, with Silverlink expected to earn $7.8 million in annual recurring revenue in FY22.

The PAS company is known for servicing the UK NHS market, with Alcidion set to walk away with a roughly 26 per cent market presence as Silverlink services 38 trusts.

ALC will fund the buy via a capital raising, with the company already receiving commitments to raise $30 million via a placement to institutional and sophisticated investors.

Another $25 million is then set to be raised via a 1 for 10.5 non-renounceable entitlement offer to existing shareholders, with all of the new shares to be priced at 25 cents each.

That price represents a 21.9 per cent discount to the last close price of 32 cents, with a total of 220 million shares to be issued under the fundraise.

Alcidion Group Managing Director Kate Quirk said Silverlink would fit in well with the company’s existing product offering.

“This acquisition is very exciting for Alcidion and clearly aligns with our acquisition strategy of expanding our product offering, increasing our UK market presence, and providing a positive contribution to our financial performance,” she said.

“Combining Miya Precision with Silverlink PAS product reinforces our commitment to the UK market. Together we will support the open availability of data to ensure our healthcare systems are well equipped to address the challenges ahead.”

Alcidion places its shares in a trading halt ahead of the fundraise and acquisition news announcement today, with ALC securities last trading at 32 cents each.

ALC by the numbers
More From The Market Herald
Limeade (ASX:LME) - CEO, Henry Albrecht

" Limeade (ASX:LME) maintains FY21 financial guidance in quarterly report

Limeade (ASX:LME) has maintained its FY21 revenue guidance of $50 million to $53 million, but posted…
Sihayo Gold (ASX:SIH) - Executive Chairman, Colin Moorhead

" Sihayo Gold (ASX:SIH) secures further interim funding

Sihayo Gold (ASX:SIH) has secured interim funding from its shareholder, PT Saratoga Investama Sedaya Tbk.

" Alchemy Resources (ASX:ALY) commences aircore drilling at Karonie

Aircore drilling is underway at Alchemy Resources' (ASX:ALY) Karonie gold project 110 kilometres east of Kalgoorlie,…
Little Green Pharma (ASX:LGP) - Managing Director, Fleta Solomon

" Little Green Pharma (ASX:LGP) seeks to expand to Greece

Little Green Pharma (ASX:LGP) seeks to expand to Greece