Ann: Alcidion to acquire MKM Health and Patientrack, page-84

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HEALTHCARE SOFTWARE COMPANY SNAPPED UP
25 Apr 2018 South West Deals Josh Morris

A South West-based healthcare software company has been acquired by an Australian business as part of a deal worth an initial £6.5m (AUS$12m).

The purchase by healthcare informatics software company Alcidion of MKM Health and its Bath-based subsidiary Patientrack gives Alcidion its first entry into the UK market, which includes 20 UK based hospitals.

The initial consideration is AUS$10m in Alcidion shares, subject to completion adjustments, and the payment of AUS$2m in cash which will be funded from existing cash reserves.

A further contingent consideration of up to AUS$4m, to be satisfied by the issue of Alcidion shares in 12 months subject to a performance review.

The deal also includes MKM Health and Patientrack subsidiaries in Australia and New Zeeland.

Kate Quirke, MKM Health chief executive said: “Entering into acquisition agreements with Alcidion represents an exciting opportunity for our company and employees. There are many market opportunities for an integrated Miya Patient Flow and Patientrack product, and together our products represent a differentiated platform which we think will rapidly accelerate our market presence.

"We also see the transition to being part of a publicly listed group as essential to maximise the growth potential of our great products and proven business model. Additionally our combined healthcare IT system integration and implementation ability will be market leading in this rapidly evolving market."

Alcidion chairman Ray Blight said: "We are very pleased to have entered into acquisition agreements to acquire the shares of MKM Health and Patientrack, both leading technology players in the healthcare sector. We are expanding our technology capabilities and our product offering, and the combined group will also have the specialist health IT sales, advisory and service delivery capabilities that are required to sell and deliver complex healthcare IT platforms.

"We believe the Acquisition creates valuable synergistic opportunities for both companies and is expected to increase Alcidion’s earnings, on a per share basis, in the first full year of ownership.

"This merger is an important strategic decision for both parties and will drive improved innovation and efficiency for our customers. Our customers, and ultimately patients, remain at the heart of our business.

"As hospital and healthcare providers continue to face ever growing demands and limitations on resources, innovative healthcare IT solutions that improve the efficiency and effectiveness of clinical and business activities will be crucial to the future of the industry.

"Operating together, Alcidion, MKM Health and Patienrack will be uniquely positioned to offer solutions that support high performance, integrated healthcare."