Ideagen completes acquisition of US-based Medforce Technologies Inc
Healthcare software specialists, Medforce, marks Ideagen’s first American acquisition1
Ideagen, the UK-based technology firm, has announced the acquisition of American healthcare software specialists, Medforce Technologies Inc, for $8.7m.
Medforce is a growing, profitable and cash generative organization which has successfully developed its Command suite of enterprise information management, workflow, and compliance software since 1993.
Its flagship CommandCenter product is used by over 300 customers including CVS Caremark, McKesson, Lincare Holdings Inc, Rotech Healthcare Inc and Mayo Clinic, supporting business process productivity and legal compliance.
With offices near New York and Kansas, Medforce becomes Ideagen’s first American acquisition and adds a strong client base, an established suite of intellectual property and a skilled workforce to Ideagen’s growing global operations.
David Hornsby, Ideagen’s CEO, said the acquisition met Ideagen’s strict performance metrics and would provide the company with further growth opportunities in a strategic market.
He added: “Medforce is a valuable addition to the Group and is in line with our strategy of acquiring businesses that have strong IP and recurring revenues.
“Medforce has established an extremely compelling value proposition and brings to the Group a complementary solution offering a talented workforce and long-term customer relationships. This acquisition further strengthens our position in the US Healthcare market.”
Medforce established itself as an innovative software provider through its comprehensive Command product suite, which includes business process and information management software as well as an electronic signature product designed specifically for healthcare.
For the year ending 31st December, 2017, the company achieved revenue totaling $4.7m of which 82% was recurring.
Mr. Hornsby added: “The acquisition of Medforce provides an additional source of recurring revenue and broadens our relationships in the existing healthcare sector while enhancing our geographic customer footprint.
“The first half of the current financial year saw significant growth in the US for Ideagen, with over 50% of all new logo wins and 70% of all new SaaS wins. The Medforce acquisition will provide infrastructure and a platform for further growth in this key market as we continue our global growth plan.”
Medforce is Ideagen’s 13th acquisition in just over a decade and means the company now has a major operational presence in the US, UK, Asia and Central Europe.
1Xamcor Inc. acted as sole M&A advisor to Medforce for this transaction.