Allocate Software plans to build a bigger Australian presence with the acquisition of RosterOn, a provider of workforce management software to the healthcare market.

Allocate Software plans to build a bigger Australian presence with the acquisition of RosterOn, a provider of workforce management software to the healthcare market.

London-headquartered Allocate says the A$3 million (£2 million) deal will provide a ‘much stronger local presence’ for the business and is in line with its growth plans for the Australian healthcare market.

The AIM-listed company supplies workforce and compliance software to blue-chip clients in the private and public sectors to markets including healthcare, defence and maritime.

It is the fifth acquisition for Allocate, says chief executive officer Ian Bowles.

He adds: ‘RosterOn brings additional domain expertise and complimentary applications functionality for healthcare in Australia.’

Bowles describes the purchase as a ‘timely opportunity’ to add scale to its existing Australian operations.

Under the terms of the deal, founders of Melbourne-based RosterOn, Dean Seeley and Peter Collins, are to remain with Allocate.

Collins comments: ‘The strategic fit between Allocate and RosterOn is excellent for both customers and staff. Healthcare has emerged as one of the most exciting areas of the workforce management software market and the enlarged group is well positioned to exploit this opportunity.’

RosterOn reported revenues for the year ending 30 June 2011 of A$3 million with EBITA ofA$600,000.

According to a statement from the company, an initial consideration of A$2.6 million is payable in cash with a further A$400,000 to be paid upon the retention of the key directors of RosterOn for 18 months from completion.