Alcidion (ASX:ALC) share price halted amid acquisition news

The healthcare technology company is buying a UK software firm. Here are the details

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The Alcidion Group Ltd (ASX: ALC) share price is frozen today with the company announcing it will acquire Silverlink PCS Software Limited.

The healthcare technology company’s shares were at 32 cents before the trading halt was announced just before the market open.

Let’s take a look at what is going on at Alcidion today.

What’s happening with Alcidion?

The Alcidion share price was halted today after the company announced it had signed a binding share purchase agreement to acquire UK software company Silverlink. The acquisition will be funded through a capital raise.

Silverlink Software is one of the most widely used patient administration systems in the UK National Health System (NHS).

The $55 million capital raise will include a $30 million share placement and a $25 million entitlement offer of 1 new share for every 10.5 existing shares.

Shares for the placement will be offered at 25 cents apiece. That’s a 21.9% discount on the last closing price of 32 cents.

Roughly 220 million new shares will be issued to the market as part of this capital raise.

Alcidion develops and licenses a range of software products for use in the healthcare sector. It now plans to expand its UK presence to 38 NHS trusts, or 26% of the market.

Management commentary

Speaking on the news that’s halted the Alcidion share price today, CEO Kate Quirke said:

This acquisition is very exciting for Alcidion and clearly aligns with our acquisition strategy of expanding our product offering, increasing our UK market presence, and providing a positive contribution to our financial performance.

We welcome the Silverlink team of 11 staff who together with our own senior leadership team have decades of product development, sales, and implementation experience in Patient Administration Systems.

Alcidion share price snapshot

Shareholders have recorded gains of almost 73% in 2021. Looking at the bigger picture, the last 12 months have seen the Alcidion share price surge by around 48%.

Alcidion reached a yearly high of 49 cents in June, while January delivered the yearly low of 18 cents.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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