Financial
Healthcare tech biz PKS seals first deal since listing – The Australian Financial Review
Street TalkApr 21, 2020 – 1.50pmLess than a year after hitting the ASX-boards, small cap healthcare tech company PKS Holdings has lived up to its IPO promise that it would actively look to make acquisitions.Healthcare tech company PKS Holdings has made its first acquisition since listing. Glenn HuntThe $16 million company has inked an agreement to…
Street Talk
Less than a year after hitting the ASX-boards, small cap healthcare tech company PKS Holdings has lived up to its IPO promise that it would actively look to make acquisitions.
Healthcare tech company PKS Holdings has made its first acquisition since listing. Glenn Hunt
The $16 million company has inked an agreement to acquire software-as-a-service healthcare business Pavilion Health, in an all scrip deal that values the target at $8.5 million.
Pavilion shareholders will be issued 65.2 million new PKS shares as part of the deal, about 35 per cent of the company post acquisition.
Pavilion is a cloud-based software company that provides audit, risk and consulting software services to hospitals and health bodies. Its customers include 550 hospitals in Australia, owned by the likes of listed giant Ramsay Health Care and private player Healthscope.
Established in 2007, Pavilion generated $4.37 million in sales in the 2019 financial year and earnings of $1.66 million.
The acquisition by PKS is no surprise given the seasoned private equiteers sitting on its board.
There’s Mike Hill and Neil Broekhuizen from Ironbridge, Potentia Capital’s Andy Gray and Brad Lancken from Liverpool Partners.
As part of the deal, Broekhuizen will retire from the PKS board and former Pavilion chairman Stephen Borness will join.
PKS said it would be looking to combine its software products with Pavilion’s to create a more compelling value proposition to potential customers and also facilitate cross-selling and upselling.
PKS offers its customers a clinical decision management system, which uses patient data and clinical expertise to deliver patient-specific reports, recommendations and alerts.
Its shares were trading up as much as 35 per cent on Tuesday, around 18¢.
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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years’ experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.mac
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