Social care application stalwart OLM Group has added to its portfolio with the acquisition of Esprit, a provider of multi-agency information sharing software to UK local authorities and the NHS. The terms of the deal were not disclosed.
This appears to be a very sensible purchase by privately-held OLM and one that broadens its horizons somewhat. Esprit’s ability to ‘join up’ Adult Social Care, Children’s Services and the NHS, enabling professionals to collaborate and share information securely, is a great fit with OLM’s product set. It is also nicely in tune with the government’s ambitions to bring health and care closer together. Esprit’s ShareCare:Direct portal, which supports users in shaping their own care, could also prove a useful asset as government policy moves further towards personalised care packages.
For OLM some diversification through acquisitions such as Esprit is required if it’s to return to growth. Against a backdrop of challenging public sector conditions and a very mature UK social care application market, OLM Group’s turnover declined by 10% in FY11 (to 30 June) to £18m. As you might expect, the Group’s training and events business suffered particularly badly. Profits improved but the accounts suggest margins are still low - PBT was up to £570k from £250k the previous year.
OLM is in the fortunate position of not having any debts or shareholders to satisfy. Its strategy is rooted in a passion for social care (see OLM: evolving with the social care market) and it’s more focused on the medium and long term than publicly-listed rivals. But that doesn’t mean it lacks ambition, indeed its goal is to be ‘the leading information solutions provide across the care sector’. Acquisitions like Esprit will help with this aim, but OLM is aware that it also needs to continue innovating if it’s to deliver organic growth in markets that are set to remain ‘challenging’ for the foreseeable future.