Advanced Computer Software (ACS) is on the acquisition trail again. The ‘healthcare and business management software and services provider’ has acquired Fabric Technologies, a London-based managed services provider. ACS is paying a maximum of £4.6m in cash, including a performance related earn-out of up to £0.4m. Fabric had a turnover of £11.2m in the year to end December 2010. EBITDA and PBT were both £0.5m in the same period. As you’d expect from CEO Vin Murria, the acquisition is immediately earnings enhancing and has high recurring revenues (around 58% in FY10).
Fabric’s 95 employees will be integrated with ACS’ Advanced 365 Manages Services division, which grew by 16% organically last fiscal year (see Cross-selling and mobile apps drive ACS growth). Fabric brings with it a range of outsourced managed services and implementation skills as well as unified communications and collaboration solutions that ACS will be looking to cross-sell to its existing customer base (as it has done successfully with previous acquisitions). Fabric moves ACS further away from its health and care roots but ...