Acquisition of Care Management Systems Limited
18/01/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230118:nRSR0990Na&default-theme=true
RNS Number : 0990N Grafenia plc 18 January 2023
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.
18 January 2023
Grafenia plc
("Grafenia", the "Company" or the "Group")
Acquisition of Care Management Systems Limited ("CMS")
Grafenia plc (AIM: GRA) is pleased to announce that it has acquired the entire
issued share capital of Care Management Systems Limited, a provider of care
home management software and systems, based in Bristol, on a debt free/cash
free basis.
The total consideration of £3.5m will be satisfied in cash. The acquisition
is expected to be cash flow generative and earnings enhancing in the first
year after acquisition.
The initial consideration comprises cash of £2.975m to be paid on completion,
together with deferred consideration of £0.525m to be paid on the first
anniversary of completion.
About Care Management Systems Limited
CMS's care home management software, CareDocs, was initially developed by
brothers Jonathan and Kristopher Ann in 2004 as an in-house solution for use
in a care home owned by family members.
Having realised the commercial potential for the CareDocs solution, CMS was
founded in 2008 and now licenses its products and services to over 800 hundred
care homes around the UK. Approximately 95% of CMS's revenues arise from
annual recurring fees.
CMS has an established management team and currently employs 27 staff.
Jonathan and Kristopher Ann 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.
The unaudited financial statements for CMS for the year ended 28 February 2022
reported revenue of £2.45m, EBIT of £0.12m and closing net assets of £1.3m.
Acquisition Rationale
CMS meets Grafenia's acquisition criteria by being a software business and
having a prominent position in its vertical market. Delivering solutions that
generate revenues of a recurring nature.
Gavin Cockerill, Acting CEO of Grafenia said: "The acquisition of CMS 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 CMS and welcome its team to Grafenia's
growing portfolio."
Jonathan Ann commented: "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 CMS management team and look forward to seeing the
business develop under Grafenia's ownership."
For further information:
Grafenia plc
Gavin Cockerill (Acting CEO)
07968 510 662
Allenby Capital Limited (Nominated Adviser and broker)
0203 328 5656
David Hart / Piers Shimwell
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END ACQGPUUAGUPWUQR