Ideagen (IDEA) has bought Medforce Technologies – a healthcare software business – for $8.7m (£6.2m). This marks the information management software supplier’s first US acquisition, and will be funded with cash and existing debt facilities.
Medforce has all the hallmarks of an astute acquisition. It is growing, profitable and cash generative. Sales for the year to December 2017 of $4.7m comprised more than 80 per cent recurring revenues, while cash profits and post-tax profits were $1m before $400,000 of non-recurring costs. Its ‘Center’ platform is used by more than 300 US-based healthcare customers. All being well, the business should enhance Ideagen’s earnings for the year to April 2019.
Ideagen is an acquisitive company: it made four purchases in the last financial year. We learnt within the recent half-year results that these have integrated to plan, boding well for Medforce’s performance under new ownership.
