The Citadel Group has acquired Queensland-based medical software-as-a-service provider Anaesthetic Private Practice (APP) in a $2 million all-cash deal.
APP was founded in 2010 and provides cloud-based practice management and billing solutions to anaesthetists in private practice, with close to 300 customers mostly in Queensland.
According to Citadel, 89 percent of APP's revenue is recurring, with approximately $500,000 in annual earnings.
APP will be a direct bolt-on to its existing eHealth capabilities, according to Citadel. In September last year, Citadel outlined its ambitions to grow its health business when it paid $8.2 million to acquire Brisbane-headquartered eHealth system supplier Charm Health, which also provides medical software solutions.
Citadel executive deputy chairman Miles Jakeman said the Canberra-based MSP would adopt the same approach to APP as it did with Charm and Kapish, the Melbourne HPE gold partner Citadel bought in May 2016 for $17.5 million.
Citadel said that APP's solutions could be readily extended into other health specialisations, and growth would be accelerated with its own business development resources, particularly in NSW and Victoria, in both private and public practices.
"Key tenets of Citadel's growth strategy are building scalable intellectual property and expanding our cloud-based SaaS offerings," said Citadel chief executive Darren Stanley.
"The acquisition of APP is, therefore, a logical extension for Citadel as it supports our immediate expansion across the anaesthetist and general eHealth sectors whilst also growing Citadel's recurring subscription revenue base."