Marlowe acquires CQC Compliance in deal worth around £2m

(Sharecast News) - Safety and compliance software and service provider Marlowe has acquired CQC Compliance, a care quality compliance consultancy, with the total enterprise value payable expected to be in the region of £2m, it announced on Wednesday.
The AIM-traded firm said CQC, based in Preston, Lancashire, provides retained consulting services to care homes, surgeries and pharmacies, to ensure compliance with health and social care regulations.

It said the consideration payable for CQC, which was currently generating a run rate annual operating profit of about £0.23m, included an upfront consideration of £0.6m and a performance-related contingent consideration over four years, to be funded from Marlowe's existing cash resources.

"The acquisition adds a new adjacent capability to Marlowe's governance, risk and compliance division, broadening the group's offering of regulated compliance services into the care market whilst offering synergies with Marlowe's employment law and safety businesses," the board said in its statement.

"The business has run rate annual revenues of approximately £1m."

At 0805 BST, shares in Marlowe were up 1.14% at 890p.