Alcidion (ASX:ALC) raises $55m to fund the acquisition of Silverlink PCS Software Limited via a fully underwritten Placement and Accelerated Non-Renounceable Entitlement Offer

Henslow is pleased to have raised $55m, acting as Joint Underwriter, Joint Lead Manager and Joint Bookrunner alongside Canaccord Genuity (Australia) Ltd. The fully underwritten raise was structured as a $30m Placement and $25m, 1 for 10.5 Entitlement Offer with proceeds used to fund the acquisition and associated costs of the transaction.

The capital raise was conducted at an offer price of $0.25 per new share representing a 21.9% discount to the last close price of $0.32.

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.

Henslow has advised Alcidion in raising over $100m across 3 transactions, along with assisting shareholders to realise value via on-market trading, over the past 3 years.

The successful transactions (both the acquisition and capital raise) provide a further example of Henslow’s ability to partner with exciting growth companies and provide combined and complementary M&A and equity market services.

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