Business
Acquisition of Dynamic Change
Acquisition of Dynamic Change.
About this update from Atlantic Lithium Limited.
[{"type":"text","content":"\n RNS Number : 4223L Allocate Software PLC 06 May 2010 \n \n\n6 May 2010\nALLOCATE SOFTWARE PLC\n(\"Allocate\" or \"the Company\")\n \nAcquisition of Dynamic Change\n \nThe Board of Allocate (the \"Board\") announces that it has agreed the terms of an acquisition by the Company of Dynamic Change Limited (\"Dynamic Change\"), a UK-based software-as-a-service (\"SaaS\") provider of regulatory compliance, corporate governance, risk and performance management for the UK healthcare market, for up to £9.0 million over three years (the \"Acquisition\"), which includes £1.6 million of cash and receivables acquired with the business on completion. \n \nOverview of Dynamic Change and the Acquisition\n§ SaaS provider with over 98 per cent. of revenues from healthcare - multi-tenant hosted platform\n§ Customer numbers have grown from 54 as at 31 March 2008 to 125 as at 31 March 2010 \n§ Approximately 70 per cent. of Dynamic Change's total revenues of £3.2 million for the financial year ended 31 March 2010 are contractually recurring from subscriptions. These have grown by approximately 40% over the last financial year\n§ Upfront consideration of £4.9 million in cash and £100,000 in shares in the Company \n§ Dynamic Change is being acquired with cash balances and receivables of approximately £1.6 million, largely reflecting deferred income which arises from subscriptions paid annually in advance\n§ Further contingent consideration of up to a maximum of £4.0 million payable in cash and in full if Dynamic Change achieves at least 25 per cent. compound annual growth in run-rate subscription revenues in the three year period to March 2013 \n§ The Acquisition is expected by the Directors to be significantly earnings enhancing in the first full financial year of ownership by Allocate\n \nInformation on Dynamic Change\nDynamic Change was founded in 2001 and is based in Keele, Staffordshire. Dynamic Change is a leading provider of regulatory compliance, corporate governance, risk and performance management for the UK healthcare market. Dynamic Change has developed the \"Performance Accelerator\" SaaS software platform that is used by its customers to monitor and manage regulatory compliance, corporate governance, business objectives, risks and controls, performance indicators and financial targets.&...