Acquisition adds Aura to Servelec’s growth plans
SHEFFIELD technology group Servelec has made its second acquisition in less than six months as it strengthens its healthcare offer ahead of its next phase of growth.
The group has paid £1 for Salford-based software developer Aura, plus £900,000 for the company’s debts. Servelec will pay up to £350,000 over the next three years based on performance.
Aura’s software controls bed management and patient flow across hospitals, clinics and primary care centres, enabling improved care of patients.
The purchase is part of Servelec’s strategy to grow its health and social care division and follows the acquisition of Corelogic in December. It also strengthens Servelec’s team as it embarks on its next phase of growth, which is the “Refresh” programme for software systems previously delivered into the North, Midlands and Eastern areas of England by Computer Science Corporation as part of the National Programme for Health, which ends in July 2016.
Alan Stubbs, chief executive of Servelec Group said: “We have a clear direction of travel which is to be successful in the ‘Refresh’ in the North of England and this acquisition increases the appeal of our Oceano product and adds further functionality to RiO, our market leading Mental Health and Community Health system.
“The quality of Aura’s technology is second to none…we are really excited by the additional growth opportunities Aura offers.”
Aura’s unaudited accounts for the year to March 2015 showed a pre-tax loss of £1.5m on a turnover of £1.1m. Its cost base has already been reduced from £2.6m to below £1m for the current financial year and its directors believe there is a strong pipeline of future revenue. Servelec expects the acquisition to be earnings neutral in 2015 and enhancing thereafter.
Walker Morris partner Paul Emmett and Ed Ainscoe, both from the Corporate Team, provided legal advice to Servelec. Deloitte provided financial advice to Servelec.
