Ascribe buyout nears
A near £30m private equity-backed buyout of North West health software group Ascribe is on track and should be completed in the next month, it emerged today.
Corporate financiers from Altium Capital have selected equity house ECI as the preferred bidder, and are now finalising the debt arrangements.
A source close to the deal said today: “The equity is in place and despite the ongoing issues in the financial sector, there is confidence the transaction will get over the line.
“The equity funding is in place and it’s now a case of finalising the banking.”
Ascribe, which is led by executive chairman Stephen Critchlow, has performed well in the last year, and recently posted a 23% hike in profits on the back of a key contract with the NHS.
The company, which has been listed since December 2004, revealed in August that bosses were looking at a take-private deal.
It is understood that Mr Critchlow, who owns around 15% of Ascribe, and his management team believe the long term future for the business is as a private firm, away from the fluctuations of the stock market.
Ascribe supplies technology to hospital pharmacies, casualty departments and to local doctors’ surgeries. Its software is used for prescribing, electronic patient records and medicines management.
The AIM-quoted company employs more than 220 worldwide, with operations in Africa, Australia and New Zealand. Shares were at 23.5p today, valuing the firm at £27.6m.
