07.12.2021

Alcidion (ASX:ALC) acquires Silverlink PCS Software Limited for up to $61.1m (£33.0m)

Henslow is pleased to have acted as M&A Corporate Advisor to Alcidion Group Limited (ASX:ALC) on the acquisition of Silverlink, one of the largest and last remaining specialist Patient Administration System (PAS) providers servicing the UK NHS market.

Silverlink is recognised as being a flexible, cost-effective PAS that can easily integrate with other clinical systems to support a ‘specialist modular system’ approach, enabling the benefits of a full Electronic Patient Record (EPR/EMR) without single supplier lock-in.

Silverlink provides Alcidion with a PAS capability, the foundational data store for healthcare, thereby expanding the overall product offering, which when combined the Miya Precision clinical platform, provides a strategic pathway to developing a cloud-native, modern and modular EPR solution.

The acquisition aligns with Alcidion’s stated acquisition strategy and expands Alcidion’s UK presence from 27 trusts to 38 trusts, representing an approximately 26% market presence across the acute NHS market. Furthermore, Silverlink revenue is 95%+ recurring with Silverlink management forecasting FY22 revenue (30 April year-end) of A$7.8M and forecast EBITDA of A$4.8m.

With approximately 60+ UK Trusts, including several existing customers needing to modernise their existing PAS software over the next 5 years, the broadened product suite enables increased opportunity to expand Alcidion’s offering to existing customers who have one or more of Alcidion’s solutions.

The acquisition price for Silverlink is £30.0m (A$55.5m) upfront in cash, with a further £3.0m (A$5.6m) subject to earn-out based on successful renewal of select customers prior to 31 March 2024.

This is the second acquisition Henslow has advised Alcidion on during 2021, following the acquisition of ExtraMed in April 2021.

Having worked with Alcidion since 2018, we look forward to further building upon our relationship as they continue their progression of becoming a leading global healthcare technology organisation.

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