Servelec Group is pleased to announce the acquisition of Aura Limited. This acquisition is a continuation of Servelec’s growth strategy for its Health & Social Care division, building upon the acquisition of Corelogic in December 2014, which strongly positioned Servelec to support providers of both health and social care as the markets move in the direction of converged care.
The initial purchase consideration is £900,000 for the purchase of £1,121,000 of debt held by the company and £1 for equity, with a maximum further consideration of £350,000 contingent on certain performance conditions being met over a 3-year period ending April 2018. The initial consideration will be paid from internal cash reserves. Any additional consideration will be satisfied by the issue of new shares at the prevailing share price at the time of issue.
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.
Overview of Aura
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, which includes ‘Flow’1 their bed management software, will continue to be sold on a standalone basis as well as being integrated into Servelec’s Oceano product, developed for the acute care market and its market leading EPR, RiO, thereby adding to their functionality.
The Aura team bring 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.
The acquisition was supported by Walker Morris led by Paul Emmett, Deloitte Leeds led by Matt Henderson and a team of Servelec staff handling the due diligence.
Alan Stubbs, CEO of Servelec Group said: "I am very pleased to be able to announce the acquisition of Aura. Our success in the London Refresh, winning 20 out of the 36 contracts awarded was in line with our expectations, yet above that of the market. With the addition of Aura’s suite of products and the enhanced functionality that they provide to our systems, we are extremely excited about the forthcoming ‘Refresh’ in the North of England.
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 that Aura offers.”
Division: Servelec HSC
Category: Healthcare, Aura