Alcidion (ASX:ALC) finalises terms for ExtraMed takeover

Company News

by Michael Luu

Healthcare informatics developer Alcidion (ASX:ALC) has ironed out terms for the proposed takeover of British health technology specialist ExtraMed.

ExtraMed develops digital management systems for the UK healthcare industry, designed to coordinate hospitals and patient arrangements.

The acquisition will cost Alcidion (ASX:ALC) $9.6 million. The company has lined up institutional commitments worth $15.4 million to the company’s equity raising to finance the purchase. The ASX-listed company plans to implement a share purchase plan for 32 cents per share. Alcidion expects the acquisition to boost revenue by $3 million and earnings by $500,000.

Alcidion has also won the bid for a military contract with the Australian Defense Force, under which the company will provide digital solutions to health record management of the department’s employees.

Shares in Alcidion (ASX:ALC) are trading 8.8 per cent higher at 37 cents