Alcidion Group Ltd (ASX:ALC) earlier this week announced the acquisition of Telstra Health’s patient flow business, strengthening the company’s position in digital healthcare technology and adding scale to its recurring revenue base.
Managing director and chief executive Kate Quirke said the acquisition aligned strategically with Alcidion’s focus on improving patient flow and hospital efficiency through its Miya Precision platform, which consolidates healthcare data to support clinicians in delivering safer and more efficient care.
Quirke said the transaction would add 33 customer sites to Alcidion’s operations across Australia, with Telstra Health previously holding a strong presence in Queensland and Victoria.
She noted that the acquisition was “extremely positive from an earnings perspective” and would contribute approximately $3.7 million in revenue and more than $1 million in underlying EBITDA.
According to Quirke, the customer base is highly attractive given the long-standing nature of healthcare relationships, with the top ten customers averaging around a decade of using the platform.
The company plans to transition customers from Telstra Health’s older on-premise systems onto Alcidion’s cloud-enabled Miya Precision platform over time. Quirke said this transition represented an opportunity to improve healthcare efficiency while also supporting future revenue growth.
She explained that the company’s objective was to help clinicians “make better use of the resources that we have in healthcare through giving them data”.
Alcidion has continued to strengthen its financial position over recent years through growing revenue, improved EBITDA performance and a solid cash balance. The acquisition further supports the company’s strategy of scaling recurring revenue while consolidating expertise in patient flow management.
International expansion also remains a key growth catalyst. Quirke highlighted that around 50% of Alcidion’s revenue prior to the acquisition was generated in the UK, where the company has built a presence across approximately 30% of NHS trusts.
She said there remained significant growth opportunities within existing NHS customers, while the company was also exploring expansion into Canada and the Middle East.
Although the US healthcare market presents a significant long-term opportunity, Quirke said Alcidion intended to take a measured approach given the scale and complexity of that market. Instead, the company sees Canada as a potential stepping stone into broader North American expansion.
The acquisition positions Alcidion to deepen its presence in hospital patient flow management while continuing to pursue international growth opportunities in digital healthcare infrastructure.
Interview highlights
- Alcidion announced the acquisition of Telstra Health’s patient flow business
- The deal adds 33 customer sites to Alcidion’s portfolio
- Acquisition revenue is approximately $3.7 million with EBITDA above $1 million
- Alcidion’s Miya Precision platform focuses on improving hospital efficiency and patient care
- The company plans to transition customers from older systems onto its cloud-enabled platform
- About 50% of Alcidion revenue currently comes from the UK market
- The company has a presence in around 30% of NHS trusts
- Expansion opportunities are being explored in Canada and the Middle East
- Management sees the US as a future opportunity but not an immediate priority
- The acquisition strengthens Alcidion’s recurring revenue base and scale
Welcome back to Proactive Investors. Ladies and gentlemen, I'm your host Kerry Stevenson. I've asked Kate Quirke, managing director and CEO of Alcidion, ASX code ALK, to join us today. The company operates in proactive patient care and has recently announced an acquisition from Telstra Health. Kate, great to see you.
Kate Quirke: Thank you very much. Great to join you.
Proactive: Can you give us a quick overview of Alcidion for viewers who may not know the company?
Kate Quirke: Alcidion is a SaaS company. We built a platform known as Miya Precision that consolidates data across the healthcare system, particularly focused in hospitals, although we also support the Australian Defence Force. We consolidate data and present it to clinicians in a way that helps them be more efficient in delivering care, provides safer patient care and ultimately helps clinicians make better use of healthcare resources. The aim is to treat patients more quickly and get them home faster.
Proactive: Today you announced a major acquisition from Telstra Health. Why is this important for Alcidion?
Kate Quirke: Telstra Health has been a provider of digital health solutions across hospitals, aged care and other healthcare verticals. The company decided to focus on broader healthcare system connectivity and exit its hospital patient flow business. Alcidion is already a strong player globally in hospital patient flow management, so this acquisition consolidates the market in Australia.
The deal adds another 33 flow customers to Alcidion. Telstra Health has a strong presence in Queensland and Victoria and operates across five of the six Australian states. This acquisition provides an opportunity for those customers to transition onto our modern Miya Precision platform over time.
Proactive: Can you talk us through the deal itself and the financial profile?
Kate Quirke: It is a clean break for Telstra Health and they know the business is moving into safe hands. The acquisition is very positive financially for Alcidion. We have been focused on strengthening recurring revenue, maintaining a strong cash position and improving margins.
The customer base is highly attractive, with the top ten customers averaging ten years using the product. Healthcare relationships are very sticky. The revenue from the acquisition is approximately $3.7 million and underlying EBITDA is just over $1 million. It is immediately earnings positive and strengthens our support capabilities for those customers.
Proactive: What does the acquisition mean for investors and shareholders?
Kate Quirke: Over the last couple of years Alcidion has been strengthening its financial position, with growing revenue, improving EBITDA and a strong cash position. Scale is very important for us and this acquisition strengthens our recurring revenue profile.
The Telstra Health platform is older technology compared to Miya Precision. Our long-term aim is to transition customers onto our cloud-enabled modern platform, which supports better patient flow and better ways of working for clinicians. That transition also creates future revenue opportunities for Alcidion.
Proactive: You mentioned both local and international growth. Is Australia the key market before expanding further internationally?
Kate Quirke: About 50% of our revenue prior to this acquisition came from the UK. We have built our UK presence from one site to around 30% of NHS trusts. Miya Precision itself is only in around 10–15% of those trusts, so there is still significant opportunity there.
This acquisition also creates additional growth opportunities in Australia and New Zealand. We are also looking at new international markets including the Middle East and Canada, where healthcare systems are similar to the environments Miya Precision already supports.
Proactive: What about the US market?
Kate Quirke: The US is a very large and complex market. Our strategy is to first prove what we do well in socialised healthcare systems and then potentially expand into the US. I would like to see Alcidion build a strong position in North America through Canada first and potentially use that as a launching pad into the US. There is opportunity there, but it is not currently our highest priority market.
Proactive: Kate, great to chat with you today. Thanks for joining us.
Kate Quirke: Thank you very much.