Highlights
- Oncall Systems Ltd is a leading provider of a cloud based, clinical communications suite known as Smartpage.
- Initial consideration of NZ$750k plus performance milestones.
- Existing high profile deployments in New Zealand (Waitemata, Wellington) and Monash Health in Australia.
- Highly complementary technology, already integrated with Alcidion’s Miya platform.
- Acquisition delivers new growth potential and strengthens Alcidion’s presence in both Australia and New Zealand.
Adelaide, South Australia, 6 December 2017 – Alcidion Group Limited (ASX:ALC), a health informatics software business, today announced it has entered into a definitive agreement to acquire Oncall Systems Limited (“Oncall”), a leader in advanced clinical messaging and mobile task management systems for hospitals and allied healthcare.
Oncall Systems have designed Smartpage, a clinical communications suite that comprises of three software modules for clinical, orderly and emergency messaging/tasking delivered via the Cloud.
Alcidion’s core technology is the Miya platform, a unique decision intelligence software that provides high-value, cloud based analytics and decision support for healthcare providers. Alcidion’s technology is designed to consolidate relevant data from many complex and disparate hospital IT systems. A key feature of the Miya platform is that it integrates seamlessly with other technology platforms and therefore Alcidion can successfully bolt-on complementary technologies such as Smartpage to provide additional functionality and enhancements. Alcidion has already demonstrated that Smartpage effectively bolts onto Miya Patient Flow and Miya Access (bed management) to enhance their existing product functionality.
Alcidion entered into a reseller agreement with Oncall in May 2017 to supply its clinical messaging technology within the Alcidion Miya product suite to address many of the communication and task allocation barriers faced by after-hours clinical care teams. The ultimate goal of Miya Smartpage is to provide clinical staff with communication and workflow tools that make it faster and simpler to communicate and appropriately prioritise patient care, redressing a significant need at night when medical staffing is at a minimum.
Alcidion announced in October 2017 that it had successfully tendered for a three-year supply contract to Monash Health in respect of the Miya Smartpage solution, and has already integrated Smartpage into its Miya Flow solution, providing greater value into that product.
The consideration for Oncall is comprised of two components, the first component being an initial upfront cash payment of NZ$750k. The second component is a purchase price uplift, based on a 2x multiplier of Oncall’s revenue performance in the first 18 months under Alcidion’s ownership. The second consideration component is capped at a maximum additional payment of NZ$2.25m and will be a combination of 40% cash and 60% scrip.
Oncall currently has two well established large acute teaching hospital customers in Auckland and Wellington, and generated revenue of approximately NZ$350k in FY17.
The acquisition of Oncall is consistent with Alcidion’s growth strategy and will enable Alcidion to pursue additional market opportunities it has identified.
“We believe the acquisition of Oncall offers significant growth potential for Alcidion’s business. We are already working collaboratively with Oncall and have seen significant market demand for the Smartpage product. This acquisition will also enhance Alcidion’s presence in the New Zealand market and enable us to offer our broad suite of products to a new customer base. Ultimately, Alcidion and Oncall have been created with a common goal – to improve patient safety and staff productivity in a clinical setting”, said Alcidion’s Chairman and CEO, Mr Ray Blight.
Under the terms of the acquisition, Dr Aidan Gill, Oncall’s founder and Managing Director, will enter into an employment contract with Alcidion with appropriate restraint conditions and a minimum 3 year term. Dr Gill studied medicine at Auckland University, winning the Martin Stafford prize for Academic Excellence and has practiced as a clinician in many hospitals across New Zealand.
Clinical Communications and Collaboration, and Mobile Task Management, are critical drivers for efficiency within the healthcare sector and the rapid adoption of Smartphones systemically across health is driving an unprecedented level of demand for solutions such as Miya Smartpage.
For further information, please contact:
Ray Blight, Chief Executive Officer
Ph: +61 (08) 8208 4600
Alcidion Group Limited
ray.blight@alcidion.com