Dynamic sold to Allocate
Who?
Dynamic Change, the Staffordshire software company.
Did what?
Has been sold to London rival Allocate Software in a £9m deal.
How much?
Allocate will pay an initial £4.9m in cash and £100,000 via the issue of 156,250 new ordinary shares.
What does this mean?
Another £4m in cash will become payable subject to the future performance of Dynamic Change. HSBC provided a two-year term loan facility in support of the transaction.
Who advised?
Allocate was advised by the London office of Numis Securities, along with Strata Partners, with HSBC providing funding.
Insider comment:
The Midlands company hopes this investment will be good news, enabling it to move to the next level of its business aspirations, rather than selling out to a rival. Mil Milojevic and Hugh Ashley, founders and managing directors of Dynamic Change, said: "The strategic fit between Allocate and Dynamic Change is excellent for both customers and staff. Regulatory compliance and business intelligence are rapidly emerging as some of the most exciting areas of the software market for healthcare and the enlarged group is well positioned to exploit this opportunity. We look forward to contributing to Allocate's continued strong growth."
