Sheffield firm Servelec has acquired another software company in a £23.5m deal described as an “excellent fit”.
Servelec snapped up Corelogic, a market-leading provider of adult and child social care case management software and associated financial management modules.
Based in London and Edinburgh, it has a development centre in India, an office in Australia and 75,000 end users.
Established in 1999, its results to the end of August this year show a pre-tax profit of £1.4m, up 40 per cent year-on-year and revenue of £9.6m. In the UK, the firm already has more than 20 per cent market share in social care and is used by more than half the local authorities in London.
Servelec has been riding high since its debut on the main market of the London Stock Exchange late last year.
Chief executive Alan Stubbs said: “I am delighted to welcome Corelogic to the Servelec Group.
“This acquisition provides us with opportunities to add good incremental value to the overall business and positions Servelec well to meet the Government’s objective for ‘Converged Care’.
“This purchase fits perfectly with our strategy of acquiring IP, market share and expanding into adjacent business sectors.”
For the half year to June 30, Servelec reported revenue of £25m, up from £19.3m in the half year previous.
Pre-tax profit from continuing operations remained steady at £4.4m. There was a 12 per cent growth in underlying operating profit to £5m and the company announced it will pay a maiden interim dividend of 1.5p per share.
It has two divisions: healthcare and automation.