Servelec Group plc is pleased to announce the acquisition of Aura Limited ("Aura") (the "Acquisition"). Aura is a developer of software for the healthcare sector that controls bed management and patient flow across hospitals, clinics and primary care centres, enabling improved care of patients. Aura's software suite of products will continue to be sold on a standalone basis as well as being integrated into Servelec's Oceano and RiO products thereby adding to their functionality.
The Acquisition is a continuation of Servelec's growth strategy for its Health & Social Care division. It builds on the acquisition of Corelogic Limited in December 2014, which has strongly positioned Servelec to support providers of both health and social care as the markets move in the direction of converged care.
Details of Acquisition
The initial purchase consideration comprises:
- £900,000 for the debts of Aura, amounting to £1,100,000; and,
- £1 for Aura's entire issued and to-be-issued share capital
A further maximum amount of £350,000 will become payable, contingent on the attainment of certain performance conditions over a 3-year period ending April 2018, which will be satisfied by the issue of new shares at the prevailing share price at the time of issue. The initial consideration will be paid from internal cash reserves.
For the year ended 31 March 2015, Aura's unaudited reported loss before tax was £1.5m on a turnover of £1.1m and gross assets of £0.6m. Aura's directors have already taken action to reduce the cost base from £2.6m to less than £1.0m per annum as at April 2015 and have a strong pipeline of potential revenue. The Acquisition is expected to be earnings neutral in 2015 and enhancing thereafter.
Aura is a leading developer of healthcare software that automates bed management across hospitals, clinics and primary care centres, thereby enabling the improved care of the patient.
Aura's primary product, 'Flow', is an intuitive and functionally-rich bed management solution. Its core functionality complements and drives the patient journey, ensuring timely responses and improved quality of care. In turn, this drives bed management and provides real time indicators of current "bed-state" across an organisation, replacing traditional handwritten whiteboards. Flow is designed for use with large touch screen displays yet it will operate on any device connected to the organisations network, including desktop PCs and tablets.
Rationale for the Acquisition
The Acquisition brings an excellent product together with a team that has a wealth of market experience in software development and deployment of systems in to Acute hospitals. This strengthens Servelec's team for the next phase of its growth, which is the 'Refresh' of the software systems previously delivered into the North, Midlands and Eastern areas of England by Computer Science Corporation as part of the National Programme for Health, which ends July 2016.
Alan Stubbs, CEO of Servelec Group said:
"I am very pleased to be able to announce the acquisition of Aura. We have a clear direction of travel which is to be successful in the 'Refresh' in the North of England and this Acquisition increases the appeal of our Oceano product and adds further functionality to RiO, our market leading Mental Health and Community Health system.
The quality of Aura's technology is second to none. 'Flow' is already integrated into Oceano and RiO and with Aura's established routes to market together with our leading market position, we are really excited by the additional growth opportunities Aura offers."
For further enquiries, please contact:
Servelec Group plc on +44 (0) 1246 437 400
- Alan Stubbs, Chief Executive Officer
- Mike Cane, Chief Financial Officer
- Holly Smart, Investor Relations Manager
Investec Bank plc on +44 (0) 207 597 5097
- Andrew Pinder
- Dominic Emery
- Patrick Robb
- Sebastian Lawrence
Tulchan Group on +44 (0) 20 7353 4200
- James Macey White
- Louise Högberg
Notes to Editors
Servelec Group plc is a UK-based technology group, with significant intellectual property, providing software, hardware and services predominantly to the UK healthcare, oil & gas, nuclear, power, water, utilities and broadcast sectors.
Servelec has two operating segments; Servelec Health & Social Care and Servelec Automation:
- Servelec Health & Social Care specialises in the design, development and implementation of Electronic Patient Record (EPR), Patient Administration Systems (PAS) and Patient Flow within secondary care settings and Case Management (CM) software within Adults and Childrens social care settings. Servelec is a market leader in the mental health, community health and social care sectors in England.
- Servelec Automation provides complex, mission-critical control systems to large blue-chip companies mainly in the UK, focusing on the oil & gas, nuclear, power, water, utilities and broadcast industries. Servelec Automation also provides services from consultancy through to design, implementation, delivery, installation and on-going customer support and maintenance.
RNS Number : 2772M
Servelec Group plc
06 May 2015