Craneware to raise £ 140million to help finance Sentry acquisition
By Matteo Castia
Craneware PLC on Monday announced plans to raise 140 million pounds ($ 198.2 million) through an accelerated pound build-up to help fund the acquisition of Florida-based software as a service provider Sentry Data Systems Inc. . for $ 400.0 million.
The UK-based healthcare software provider said it has entered into a conditional agreement to buy Sentry in exchange for $ 312.5 million in cash and $ 87.5 million in Craneware shares.
The company said Managing Director Keith Neilson and CFO Craig Preston intended to participate in the placement by investing a total of Â£ 270,000.
Although the number of shares and the placement price have not yet been established, the shares to be placed are expected to be around 23% of the company’s currently issued share capital, Craneware said.
In 2020, Sentry achieved adjusted earnings before interest, taxes, depreciation, and amortization – which excludes one-time costs and other one-time costs – of $ 23.0 million and generated revenue of $ 92.0 million.
The cash consideration will be funded by the placement, the group’s existing cash resources and a new debt facility of up to $ 140.0 million, Craneware said.
“The Sentry acquisition will immediately provide additional scale to our operations, expanding our coverage of US hospitals, enhancing our pharmacy offering and strengthening Craneware’s position,” said Mr. Preston.
Write to Matteo Castia at [email protected]