IMImobile To Buy Healthcare Communications Company For GBP15 Million

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LONDON (Alliance News) - IMImobile PLC said Thursday it will acquire patient communication services provider Healthcare Communications UK Ltd for a total consideration of GBP15.0 million.

The cloud communications software provider said the acquisition is complementary to its current product set and customer base and is expected to be earnings enhancing for the financial year ending March 31, 2018.

The deal consideration includes a initial payment of GBP9.0 million in cash and a further deferred consideration of up to GBP6.0 million, payable in cash or shares, based upon Healthcare Communications achieving certain financial targets.

IMImobile said it will fund the acquisition from a mix of existing cash resources and a new GBP12.0 million debt facility agreed with Silicon Valley Bank. The new four-year loan facility bears an annual interest rate of between 1.5% and 2.0% plus LIBOR, based on the level of net leverage.

Healthcare Communications provides communications services to patients via SMS, telephone and email. In the year ended April 30, the company recorded revenue and pretax profit of GBP3.6 million and GBP400,000, respectively.

Shares in IMImobile were trading 0.9% higher at 235.00 pence.

By Tapan Panchal; [email protected]

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