Citadel Group aquires OneVentures portfolio company Charm Health
OneVentures is delighted to announce that The Citadel Group Limited (ASX: CGL) has entered into a definitive agreement to acquire its OneVentures Innovation Fund portfolio company Charm Health International Pty Ltd as part of expanding its e-health offering.
Headquartered in Brisbane, Charm Health (www.charmhealth.com.au) is Australia’s leading supplier of specialist oncology e-health systems, with its solutions used by leading public and private health providers of cancer care. Its flagship software, CHARM™, provides:
Comprehensive multi-site functionality that manages all clinical and administrative aspects of a patient’s cancer care,
a single oncology electronic medical record, with real-time access to patient information by every member of the care team shared across multiple locations,
enhanced clinical and prescriptive decision support,
solutions to critical inefficiencies in cancer care, such as complex medication management and multi-disciplinary resource coordination.
Anne-Marie Birkill, Managing Partner at OneVentures and chair of the board at Charm Health said: “While Charm Health has been courted by a number of suitors thanks in part to the global reach of Charm Health’s advisors InterFinancial, we are pleased that the company will become part of the Australian-based Citadel Group. With an emerging reputation as a leader in e-health, Citadel has the skills and resources to support the continued expansion of Charm Health’s customer base both locally and internationally. Being part of the innovative Citadel Group also provides exciting opportunities for the talented Charm Health team and the promise of continued commitment to excellence in client service that has become a Charm Health hallmark.”
OneVentures first invested in Charm Health in 2013, through OneVentures Innovation Fund I, and has been instrumental in supporting the Charm Health team in increasing market share and reinforcing the company’s reputation for delivering Australia’sbest of breed medical oncology software solution.
Gary Lakin, Chief Executive Officer of Charm Health said; “Being a OneVentures portfolio company has enabled Charm Health to grow to be the leading Australian oncology e-health solution. We are excited to become part of Citadel to drive the business through its next growth phase and to accelerate innovation that will result in the highest return on investment for our clients and improved outcomes for the patients they serve.”
Consideration for the acquisition comprises an upfront payment of $8.2million. This represents an acquisition multiple of approximately six times FY17 pro forma EBITDA. Additional payments will be made for agreed over-performance, staggered over the two years following completion.
Both the Citadel Group and Charm Health Board of Directors have unanimously approved the acquisition. It is subject to customary conditions precedent, and is expected to complete by mid-September 2017.
Charm Health was supported in this transaction by the awesome folk at InterFinancial Corporate Finance (Hyun-ju Johnson and Sharon Doyle) and DLA Piper (Joel Cox and Dylan Burke).
For more information, contact:
Tel: +61 0419 789401
OneVentures is an Australian venture capital firm with $320M under management. OneVentures utilises its strengths in business building to accelerate portfolio company performance. A global growth focus drives investment selection with portfolio companies addressing multi-billion dollar problems from breakthroughs in healthcare (e.g. needle free vaccine delivery) through to the transformation of online education (e.g. next generation courseware and personalised learning) and the connected world (IoT, SaaS and virtual reality).
Launched in 2010, OneVentures Innovation Fund I is a $40 million venture capital fund formed as an Early Stage Venture Capital Limited Partnership. OneVentures Fund I is supported by the Australian Government through the Industry Innovation Fund (IIF) program with this funding matched by institutional investors, individual high net worth investors and family offices. The IIF is an Australian Government venture capital initiative that provides investment capital and managerial expertise through licensed venture capital fund managers to investee companies.
About Charm Health
Charm Health is Australia’s leading supplier of specialist oncology e-health system. Its flagship product CHARM™ manages the clinical and administrative coordination of all aspects of a patient’s cancer care across multiple locations. Used by the foremost providers of cancer care, it is currently deployed at 100 private and public hospital sites in Australia. In the past decade over 70,000 patients have had their treatment managed via the CHARM™ platform.
About the Citadel Group
Citadel specialises in managing information management in complex environments through integrating know-how, systems and people to provide information on an anywhere-anytime basis. We are a leader in the development and delivery of managed service solutions to government and the private sector.
The majority of Citadel Group’s revenues are derived from long term managed services, and software-as-a-service solutions.