AIM-quoted Advanced Computer Software bought COA’s holding company Redac, financing the deal partly through new banking facilities of £55 million provided by HSBC and RBS.

Alchemy’s exit of COA Solutions follows its sale of Environmental Property Services for up to £38.5 million in November. The firm’s founder Jon Moulton, who quit Alchemy last September following a boardroom bust-up, claimed at the time that its investment capacity had shrunk from £400 million to £100 million.

Vin Murria, chief executive of Advanced Computer Software, says the acquisition is ‘earnings-enhancing’ for the company, offering ‘substantial opportunities to cross sell our existing healthcare products into new markets’.

COA made profits of £12.3 million in the year to March 2009 on sales of £59.8 million, of which more than half was from public sector clients. Pro-forma revenues for the enlarged group in the year to February 2010 are expected to be around £90 million.