Healthcare software developer Advanced Computer Software (ACS) has forked out £15.5m for AIM-listed Business Systems Group (BSG) to accelerate the roll out of SaaS products to NHS primary care customers.
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ACS - principally owned by venture capitalist Marwyn Neptue Fund LLP - is a share vehicle that is bolting companies together and seeking business opportunities in sectors undergoing structural, technological or regulatory change.
It already owns Microsoft Gold Partner Adastra Software which provides patient management systems for unscheduled care in Great Britain, Ireland and the Netherlands, but was unable to offer them as a service.
"With its hosting, disaster recovery and outsourcing capabilities, the acquisition of BSG will enable ACS to speed up the roll out of our core growth SaaS products," said Vin Murria, chief executive at ACS in a statement to the City.
These include iNurse, a mobile device for community nurses, Summary Care which offers a single view of patient records and End of Life application to managing palliative care.
The plan is to grow "contracted revenues" around ACS' "strategic product roll outs" said Nick Gerrard, chief executive at BSG, who owned around 60% of BSG shares.
The deal for 19.11 pence per share represents a 27% premium on BSG's market valuation at the close of trading on 7 May.
At its peak, BSG enjoyed revenues of around £40m a year and according to Eddie Pacey, European director of credit services at Bell Microproducts has navigated through tough times as it transformed the business into a services provider.
"BSG is one of the older, better run resellers in the market that went through a difficult period some years ago but it has been under good stewardship. I am delighted it has found another string to its bow," he told MicroScope.
In the year to 31 March 2008, BSG turned over £29.9m worth of sales and made a pre-tax profit of £1.2m. In the six months to 30 September, revenues rose 14% year-on-year to £18m and pre-tax profit soared 74% to £808,000.