London-based software provider Allocate has agreed to acquire a similarly focused Swedish venture for a gross £12.4 million, funded by a new £8.3 million fundraising at a small discount.
London-based software provider Allocate has agreed to acquire a similarly focused Swedish venture for a gross £12.4 million, funded by a new £8.3 million fundraising at a small discount.
Stockholm-based Time Care AB, like its potential parent, sells workforce management and optimation software to the healthcare market. It will provide Allocate a good ‘footprint’ in the public and private sectors of the Nordic region, including 57 hospitals and 110 of Sweden’s 290 municipalities as customers, plus its smorgasbord of proprietary software.
As Time Care brings a healthy cash position of its own, Allocate’s CEO Ian Bowles points out that the full £12.4m paid for the purchase in effect results in a net cost of just £8.7m.
Furthermore, the addition is expected to ‘significantly’ improve earnings in its first full year after integration, in view of revenues in 2008 of 56.1m krona (£4.6m) and 12.6m krona of earnings before interest and tax.
