Alcidion Group acquires UK company and confirms capital raise

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Informatics company Alcidion Group (ASX:ALC) has announced its acquisition of UK company ExtraMed, provided an update on its growth and released details of a $17.9 million capital raise.

Alcidion said the £5.3 million (A$9.6 million) acquisition of ExtraMed will see it become the leader in the UK market for patient flow. The company said this will increase its share of the UK National Health Service acute care market to 19 per cent.

It said ExtraMed, as part of its partnership with Hitachi Consulting, has signed a large-scale healthcare IT contract to build the UK’s first fully integrated hospital-wide Digital Command Centre. Alcidion said the partnership will also provide opportunities for Miya Precision within the emerging Digital Command Centre offering.

Alcidion said ExtraMed is forecast to contribute financial year 2022 revenue of $2.7 million.

Kate Quirke, the managing director of the Alcidion Group, said, “This acquisition significantly strengthens our position in the UK and signals our commitment to this very important market. We are delighted to welcome the highly experienced ExtraMed team of 11 staff, as well as new customers, as we continue to transform the delivery of healthcare with smart technology solutions.  

“In combining our customer bases and the established solutions of ExtraMed and Patientrack alongside Miya Precision, we are creating a strong competitive advantage and the opportunity for further growth as we look to introduce our Miya product range to these new customers. The combination of our technologies, staff and customers establishes Alcidion as the UK market leader for patient flow and as a foundation platform for digital command centres.”

Lynette Ousby, the UK managing director of Alcidion, said, “Bringing ExtraMed and its team of experts in patient flow into the Alcidion Group is a fantastic opportunity to further enhance how we work with hospitals across the UK. The combination of our capabilities and our expanding partner network opens up exciting possibilities as we continue to grow our offering to help NHS hospitals and integrated care systems that want to advance digital maturity by complementing and orchestrating their existing systems.

“Existing ExtraMed customers will benefit from the knowledge and experience we have in developing and delivering technological systems that improve patient care, while current Alcidion customers may take advantage of the expertise ExtraMed has in patient flow, in ensuring that each patient journey through the hospital from pre-admission to post-discharge is optimised."

Susan Say, the managing director of ExtraMed, said, “The Alcidion Group is a perfect home for ExtraMed, as we join a clinically driven organisation with a strong history grounded in patient safety and digital innovation. We look forward to expanding what we can do for our existing customers and other hospitals in the NHS.” 

Alcidion Group also reported it expected to report full-year 2021 revenue of $24.7 million. This is up 33 per cent on full-year revenue of $18.6 million for 2020.

The company also announced firm undertakings to raise $15.4 million via a placement of new fully paid ordinary shares to existing and new institutional and professional investors.

"Funds raised will be allocated to restoring cash reserves following the purchase of ExtraMed (including associated transaction costs) and ensuring Alcidion has sufficient investment funds and working capital to continue its growth strategy," said the company, adding it plans to raise another $2.5 million through a share placement to existing eligible shareholders.