(Sharecast News) - Social care services provider CareTech made its maiden digital investment on Tuesday, snapping up a majority stake in software and hardware developer Smartbox.
CareTech said on Tuesday that the Smartbox investment represented an "important first milestone" on its buy, build and partner strategy and added that it would further extend the group's care pathway.
The AIM-listed group will pay up to £10.6m for Smartbox, comprised of an aggregate initial purchase price of £7.05m, funded through an equity contribution and loan note from, and earn-outs of up to a further £3.55m.
As part of the acquisition, CareTech established a new subsidiary, Smartbox Holdings, of which it owned 70%, with the remaining minority ownership held by the Smartbox management team.
Chairman Farouq Sheikh said: "This partnership opens up unprecedented opportunities to blend care and technology. This will benefit the service users supported by CareTech alongside disabled people more generally and enable the Group to offer innovative solutions to both NHS and LA commissioners.
"Smartbox becoming part of CareTech will accelerate the development of next-generation technology-enabled service models for the specialist social care sector."
As of 1010 BST, CareTech shares were up 2.34% to 438.0p.
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