(Alliance News) - Grafenia PLC on Wednesday said it bought the entire share capital of Care Management Systems Ltd for a total cash consideration of GBP3.5 million.
Grafenia is a Manchester, England-based group that builds software-as-a-service systems for businesses, while Care Management is a Bristol, England-based care home management software and systems provider.
The initial consideration comprises cash of just under GBP3.0 million paid upon completion, alongside a deferred consideration of GBP525,000 paid on the first anniversary after completion.
Care Management was founded in 2008, after Jonathan Ann and Kristopher Ann developed its CareDocs software in 2004 as in-house solution for use in a care home owned by family members.
It now licences its products and services to over 800 hundred care homes around the UK, while around 95% of Care Management's revenue arise from annual recurring fees.
The Ann brothers resigned on completion of the transaction, with Jonathan remaining on a part-time consultancy basis for three months to oversee the handover and completion of certain projects.
Care Management's revenue for the year that ended February 28, 2022, was GBP2.5 million, earnings before interest and tax were GBP120,000 and closing net assets were GBP1.3 million.
Grafenia said it expects its acquisition of Care Management to be cash flow generative in a year.
"The acquisition of Care Management is our third this financial year. It marks another step forwards in our transformation plan. Becoming a serial acquirer of Vertical Market Software businesses. We're thrilled to add Care Management and welcome its team to Grafenia's growing portfolio," said Grafenia Acting Chief Executive Officer Gavin Cockerill.
Jonathan Ann added: "When Kristopher and I set about developing the CareDocs solution we didn't envisage growing a company that would establish itself as a leading supplier to care homes in the UK. We're delighted to hand over the reins to the Care Management management team and look forward to seeing the business develop under Grafenia's ownership."
Shares in Grafenia were flat at 7.50 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
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