ACS accepts £725m private equity bid

Advanced Computer Software Group has accepted a cash bid from technology-focused private equity firm Vista that values it £725m.

ACS has grown extremely rapidly since it was founded in 2006, through a string of acquisitions in enterprise and health IT software, plus strong organic growth.

The company has focused on growth opportunities across health software, mainly outside hospitals, including out-of-hours, mobile clinical solutions for nurses and care workers, and those working in mental health. It has allied this with building a position in business enterprise software.

Key acquisitions have included Adastra in 2008, Staff Plan, Oak Labs India, Healthy Software and Business Systems Group in 2009, business software provider COA Solutions and CareSys in 2010, and Strand Technology in 2012. 

The cash offer of 140p per share has been recommended by the directors and a large chunk of ACS’s shareholders. Discussions between the two companies started in October.

Brian Sheth, Vista Equity’s president, said in a statement: “Vin Murria [ACS’s chief executive] and her dedicated leadership team are stand-outs in the field” and that the group had established itself as a leader in enterprise and healthcare IT markets.

ACS’s first big acquisition was Adastra, which specialises in software for out-of-hours services. It said at the time that the company, which it bought for £13.2m in August 2008, would complement its iNurse and other mobile solutions.

Healthy Software, which specialises in GP and hospice software, was added for £0.9m in 2009.

ACS’ largest acquisition was Redac Holdings, which owned COA Holdings, a provider of accounting, analysis, HR and other ‘back office’ software, and business processes outsourcing services. It acquired Redac for £100m in February 2010.

It later added Strand Technology, which is best known for its CareNotes system, which is used in mental health. ACS acquired Strand Technology for £2m in September 2012.

Murria said in today’s statement: “We have created a substantial and robust platform, which will benefit from the considerable financial strengths and expertise in the software technology sector of Vista Equity Partners and support the wider ACS Group as it moves into the next stage of its growth."