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Alcidion Group (ASX:ALC) - Group Managing Director, Kate Quirke
Group Managing Director, Kate Quirke
Source: Alcidion Group
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  • Alcidion Group (ALC) has ticked off a number of wins including a Department of Defence contract, acquiring a U.K. company and a $17.9 million capital raise
  • Alcidion, and its consortium, has been chosen to utilise its Miya Precision digital product to improve occupational care for the Australian Defence Force
  • The contract has an estimated value of $21 million and work may begin at the end of this year
  • Additionally, the company bought ExtraMed for £5.3 million (roughly A$9.4 million) to expand its presence in the U.K.
  • Lastly, Alcidion will launch a $15.4 million placement to restore its cash position after the acquisition
  • Once the placement has settled, a share purchase plan will open to raise a further $2.5 million
  • Alcidion is up 11.8 per cent and shares are trading at 38 cents

Alcidion Group (ALC) has opened Thursday’s session with a plethora of good news including a new contract, acquisition and a capital raise.

The contract

The Australian Government’s Department of Defence has selected Alcidion as the preferred contractor for an enterprise healthcare knowledge management (HKM) system.

This project aims to deliver a system that records, stores and analyses health information for the Australian Defence Force to improve occupational care.

As part of a consortium, Alcidion will provide the longitudinal health record through Miya Precision — a product that digitises patient records and care processes.

“Alcidion is looking forward to working with the HKM project team to bring the negotiations to a successful conclusion so we may start this exciting and significant project for defence,” Managing Director and CEO Kate Quirke said.

The contract is estimated to be valued at around $21 million over five-and-a-half years.

Once final government approvals and negotiations have been granted, the contract should commence in the final quarter of the year.

The acquisition

Alcidion has acquired U.K.-based health services provider, ExtraMed, for £5.3 million (roughly A$9.4 million).

ExtraMed specialises in providing patient flow management software to help frontline staff make informed decisions.

Pleasingly, the U.K. company’s patient flow software complements Alcidion’s
Miya Precision suite which, together, will create new cross-sell opportunities.

“In combining our customer bases and the established solutions of ExtraMed and Patientrack alongside Miya Precision, we are creating a strong competitive advantage and the opportunity for further growth as we look to introduce our Miya product range to these new customers,” Kate said.

Through this buy, Alcidion’s U.K. presence will expand to 27 national health service (NHS) trusts which represents a market share of about 19 per cent of the NHS acute care trusts.

Further, ExtraMed is expected to contribute $2.7 million in revenue for the 2022 financial year and generate an earnings before interest, tax, depreciation and amortisation of $500,000.

“The Alcidion Group is a perfect home for ExtraMed, as we join a clinically driven organisation with a strong history grounded in patient safety and digital innovation,” ExtraMed Managing Director Susan Say said.

The capital raise

Alcidion has received firm commitments to raise $15.4 million through an institutional placement.

The company will issue 48 million shares to institutional and professional investors at 32 cents per share. The issue price marks a 6.7 per cent discount to the five-day volume-weighted average price.

Alcidion will use the money to improve its cash position after acquiring ExtraMed. It will also ensure the company has enough investment funds and working capital to continue its growth strategy.

The placement is expected to settle on April 22 and new shares will be allocated and begin normal trading on the following day.

Additionally, the ASX-lister is launching a share purchase plan to raise $2.5 million.

Between April 22 and May 5, eligible shareholders may subscribe for up to 30,000 shares at 32 cents per share.

Alcidion is up 11.8 per cent and shares are trading at 38 cents at 11:27 am AEST.

ALC by the numbers
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