Zircadian is a UK-based software-as-a-service (SaaS) provider of products used by junior doctors and consultants in the NHS. Allocate will pay up to £7 million for the London-headquartered business.
The deal follows Allocate’s July buy of Australian workforce management software business RosterOn in a deal totalling £2 million. The current deal for Zircadian is the sixth acquisition for the London software company.
Allocate chief executive Ian Bowles says the deal ‘complements’ its HealthRoster application.
He adds: ‘The alignment of Zircadian’s products with Allocate’s reinforces the benefits of our focused M&A strategy in which we aim to continue to build a significant healthcare applications company.’
Under the terms of the deal, an initial payment of £5.5 million is payable on completion with two subsequent considerations of £1 million and £500,000 contingent on financial targets and key staff retentions respectively.
According to a statement, the £500,000 staff retention fee is payable based upon the directors remaining with Allocate for at least six months.
Founded in 2000 by Henry Carleton and Angus MacDougall, Zircadian has expanded to its current guise of 43 staff, with products used by 142 healthcare organisations in the UK.
Carleton, director of Zircadian, comments: ‘The integration of our application into the broader HealthRoster applications is a natural step, and one which provides the combined groups customers with a highly complementary product offering.’
Zircadian’s services operate through two applications: Junior Doctor Portal which contains online diary management and temporary staff arrangements, and Consultant Portal which records annual leave and provides appraisal management.
Allocate says the deal will be funded from existing cash resources and debt. Financial advisors for Allocate were Strata Partners.