The Citadel Group has entered into an agreement to acquire Brisbane-based Charm Health, which supplies specialist oncology e-health systems.
Terms of the deal will see the business make an $8.2 million upfront payment, with additional payments to be made for agreed over-performance, staggered over the two years following completion.
Citadel’s board has approved the acquisition, which is subject to customary conditions precedent, and is expected to complete by mid-September 2017.
Charm Health’s solutions are used by both public and private health providers of cancer care.
“Citadel’s acquisition of Charm Health is strategically aligned with our ambitions in the growing e-health sector,” Citadel CEO Darren Stanley said. “We are excited to work with the Charm Health team to deliver even greater innovation and value to our public and private customers as we continue to expand Citadel’s connected e-health programs.”
According to Stanley, Charm Health adds to Citadel’s e-health capabilities, particularly on-premise and cloud-based oncology information management solutions.
“It also expands Citadel’s health clientele to include large private sector health providers," Stanley added.
"We are confident that under Citadel’s management and channel strategy we can position Charm Health’s solutions to an enhanced range of domestic and international health clients, just as we have successfully done with Kapish."
Charm Health CEO Gary Lakin said there is a strong cultural fit between the two organisations and Charm Health’s staff and clients will benefit from being part of the Citadel Group through enhanced cloud-based services and further innovation.
Citadel has closed the 2017 financial year with $98.8 million revenue, or 27.8 per cent growth. At the time of the results’ announcement, Stanley flagged the company would invest in areas such as e-health.
The company completed the integration of HPE platinum partner Kapish, acquired in July 2016 for $17.5 million.
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