Citadel Group has acquired Brisbane-headquartered e-health system supplier Charm Health for $8.2 million in a move to beef up its medical software solutions offering and growth in the health sector.
Charm Health’s flagship software, known as Charm, is a multi-site patient care management system that provides real-time access to patient information for care team members in multiple sites. The platform also offers administrative tools as well as prescription decision support and medication management.
Citadel said the upfront $8.2 million acquisition price tag was six times Charm Health’s 2017 financial year pro-forma EBITDA. In addition to the upfront cost, over-performance payments will be made over two years following the acquisition’s completion.
Darren Stanley, Citadel Group chief executive said the acquisition was “strategically aligned with our ambitions in the growing e-health sector”.
“We are excited to work with the Charm Health team to deliver even greater innovation and value to our public and private customers as we continue to expand Citadel’s connected e-health programs,” he said.
“Citadel has a strong history of successfully identifying, acquiring and integrating IP-laden Australian businesses. This acquisition strategically augments Citadel’s e-health capabilities, particularly in the areas of on-premises and cloud-based oncology information management solutions.
“It also expands Citadel’s health clientele to include large private sector health providers. We are confident that under Citadel’s management and channel strategy we can position Charm Health’s solutions to an enhanced range of domestic and international health clients, just as we have successfully done with Kapish.”
Citadel entered an agreement to acquire Melbourne-based HPE gold partner Kapish in May 2016 for $17.5 million. At the time of its acquisition, Kapish was one of only two Australian gold business partners for HPE TRIM records manager suite of document and records management solutions, along with Optus.
Charm Health chief executive Gary Lakin said the company looked forward to the growth it expected to see through its acquisition by Citadel.
“There is a strong cultural fit between the two organisations, and Charm Health’s people and clients will benefit from being part of the Citadel Group through enhanced cloud-based services and further innovation,” Lakin said.
Citadel’s board has approved the acquisition, which is expected to complete by mid-September this year.