Scottish firm pounces

Craneware in $400m US pharmacy data deal

Keith Neilson: ‘immediate additional scale’

Craneware, the Edinburgh-based data analytics company focused on the US healthcare market, is acquiring Florida-based Sentry Data Systems in a $400m (£282m) cash and shares deal.

Sentry is a provider of SaaS solutions which simplify the complexity of pharmacy procurement. It also provides business intelligence and consulting services.

It has a customer base of some 10,000 hospitals, pharmacies and clinics, including more than 600 US hospitals.

Sentry generated revenue of $92m and adjusted EBITDA of $23m (unaudited) for its financial year ending 31 December 2020.

Canon Mills-headquartered Craneware produces software that collects, analyses, compares, verifies and corrects data so US hospitals can improve their financial and operational performance as well as patient outcomes.

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The consideration for the acquisition, announced after the market closed on Monday, is being satisfied by $312.5m (as adjusted) in cash and $87.5m by the issue of shares in the company.

The cash contribution will be funded from the group’s existing cash resources and a share placing to institutional investors (update Tuesday: the placing raised £136.2m at a placing price of 2,200p, representing a discount of approximately 10.2% to the closing mid-market price of 2,450 pence per share on 7 June).

The placing shares are expected to represent approximately 23% of the company’s current issued share capital.

A number of directors and management of Craneware, including CEO Keith Neilson and CFO Craig Preston, intend to buy shares in the placing worth £270,000 in aggregate.

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