STRATA ADVISES ALLOCATE SOFTWARE PLC (AIM: ALL) ON THE ACQUISITION OF ROSTERON PTY LIMITED
Strata advises Allocate Software plc (AIM: ALL), the UK AIM listed workforce optimisation software company, on the A$3.0m (c. £2.0m) acquisition of RosterOn Pty Ltd, an Australian based provider of workforce management software with a focus on the Australian healthcare market.
Strata has acted as retained corporate finance adviser since August 2008 to assist Allocate with acquisitions. During this time, Strata has advised Allocate on four completed acquisitions (two cross-border and two in the UK) and Allocate`s market capitalisation has increased by over 100% to some £48 million as at July 2011.
Overview of RosterOn and the Acquisition
- RosterOn is a leading, local Australian provider of staff rostering software, principally for the Australian healthcare market RosterOn has product functionality complementary to Allocate’s, including an Awards interpretation engine tailored specifically for the Australian Market (complex rules relating to salary fixing arrangements)
- c. 70% of revenues come from RosterOn’s 43 healthcare customers according to unaudited management accounts, with the balance spread across multiple sectors including mining, logistics, manufacturing and retail
- In the year ended 30 June 2011, unaudited management accounts show c. A$3.0 million in revenues and approximately A$0.6 million in EBITA
- All 17 RosterOn employees will be retained
- Upfront consideration of A$2.6 million payable in cash with further consideration of A$0.4 million payable in cash and in full upon the retention of the key directors of RosterOn for 18 months from completion
- The Board believes the acquisition will accelerate the expansion of Allocate’s business in Australia and that it will be earnings enhancing, before one-time deal costs, in the financial year to 31 May 2012
Commenting on the Acquisition, Ian Bowles, CEO of Allocate, said: “I am delighted to have completed this, our fifth acquisition. Acquiring RosterOn reinforces our commitment to the local market and consolidates our position in the Australian healthcare sector. Furthermore, RosterOn brings additional domain expertise and complimentary applications functionality for Healthcare in Australia. I believe this is a timely opportunity to add scale and expertise to our existing Australian operations and I am very pleased that both of the founders, Dean and Peter will remain with the Allocate Group, reporting to Peter Croft, our General Manager for Australia and New Zealand”.