www.advancedcomputersoftware.com
Advanced Computer Software Plc comprises three main divisions: Business Solutions, Health & Care and Managed Services. Together, these divisions provide a range of software and IT services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies through streamlined processes.
UPDATE: Advanced Computer Software makes £15 million from the sale of HR firm Cedar
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Advanced Computer Software (LON:ASW) said this morning it had sold its Cedar HR Software business to the FTSE 100 outsourcing group Capita (LON:CPI) for £15 million.
The proceeds of the deal will be used to reduce the outstanding balance on ACS’s revolving credit facility.
Cedar provides rostering and duty management software and services to 30 police forces and became part of ACS when the group acquired COA Solutions in February 2010.
In the last financial year it reported sales of £6.2 million and pre-tax profits of £1.5 million.
ACS chief executive Vin Murria said: "Selling this non-core part of our business solutions division will bring us greater operational focus and enable us to significantly reduce our net debt."
The shares rose 0.74 pence, or 2 per cent to 39.46 pence in early deals, as the market welcomed the news.
“Management has spoken of the possibility of peripheral disposals for some time, and the valuation achieved is very encouraging, and ahead of the group market multiple,” said FinnCap analyst Andrew Darley.
“With both the benefit to the war-chest and management's adeptness at M&A, we still remain surprised at the lack of strength in the valuation, which retains significant upside.”
ACS is a specialist in software and IT services for the health, care and business sectors. From barely registering on the radar screen three years ago, its market capitalisation is now £130 million, while its revenues last year were just a shade under £100 million.
Chief executive Murria is the driving force behind the company. She has an incredible track record honed at software firm Kewill Systems and following that at Computer Software Group. Her expertise is buying and building businesses.
At CSG she turned a £3 million struggler into an operation that was eventually sold for £500 million, making 16 acquisitions and completing a merger in the process.
At ACS she has completed a series of deals, the biggest of which was COA Solutions, bought last February for £100 million.
Murria shows no sign of flagging. In July the company unveiled a major tie-up with Vodafone to make its iNurse smartphone-based patient management system more widely available to healthcare professionals.
iNurse allows healthcare professionals to access, record and communicate patient care information and records using a smartphone at the point of care.
And ACS believes the technology has the potential to deliver “significant productivity and efficiency benefits”, allowing healthcare professionals to increase time spent with patients as well as the number of patient visits.
Broker FinnCap said at the time: “With a potential market of 465,000 users and a £60 million market, sized at the lowest prevailing ARPU [average revenue per user], the added channel should help to accelerate take up from the current 7,000 users.”
Fellow broker Northland added: “The partnership with a mobile operator was alluded to at the prelims in June and represents an effective way to reach the mobile healthcare professionals."
