Business
Acquisition of Zircadian
Acquisition of Zircadian.
About this update from Atlantic Lithium Limited.
[{"type":"text","content":"\n \nRNS Number : 2455M Allocate Software PLC 12 August 2011 \n \n\n \nALLOCATE SOFTWARE PLC\n(\"Allocate\" or \"the Company\")\n \nAcquisition of Zircadian \n \nAllocate Software, (AIM:ALL), the leading provider of workforce and compliance optimisation solutions has acquired Zircadian Holdings Limited (\"Zircadian\" or the \"Company\"), the UK based SaaS provider of software used to plan the rotas of junior doctors and consultants in the NHS, for a total consideration of up to £7.0 million. The total consideration includes a deferred payment of £1.0 million contingent on financial targets and £0.5 million contingent on key staff retentions. Zircadian had net cash of approximately £1.0 million at 31 July 2011.\n \nOverview of Zircadian and the Acquisition\n§ Zircadian is a leading UK supplier of software to plan the rotas of junior doctors and consultants in the \n NHS. The business uses a SaaS delivery model and most contracts are multiple year agreements\n§ Its products are used by 142 healthcare organisations in the UK\n§ Functionality is complementary to Allocate's existing nurse rostering software, HealthRoster \n§ In the year ended 31 March 2011, unaudited management accounts reported c.£3.0m in billings, c.£2.5 \n million in recognised revenues and approximately £0.2 million in EBITDA. \n§ Zircadian employs 43 staff who are based in Wimbledon, London\n§ The total consideration of £7.0 million is structured as an initial payment of £5.5 million and two further \n payments totalling £1.5 million, subject to certain conditions (described below)\n§ The acquisition is expected by the Directors to be earnings enhancing in the first full financial year of \n ownership by Allocate\n \nIan Bowles, CEO of Allocate commented: \"We are delighted to conclude our sixth acquisition, one which complements our HealthRoster application well, thereby significantly enhancing the product portfolio and value that we can bring to our customer base both within the NHS and elsewhere. The alignment of Zircadian's products with Allocate's reinforces the benefits of our focused M&A strategy in which we aim to continue to build a significant healthcare applications company. I welcome the Zircadi...