ACS: raising funds to accelerate acquisitions

Run on a ‘buy and build’ model, Advanced Computer Software (ACS) is no stranger to acquisitions and with plans to raise £44m (gross) through a share placing, it will have further scope to pursue its growth ambitions. The placing looks like it will be successful and is already oversubscribed. CEO Vin Murria says the company has “numerous” large and small businesses in its sights and the funds will enable it to move more quickly and efficiently. Murria has previously indicated that the company is looking for bolt-on and strategic acquisitions that enhance the product set, open up new markets, or expand the customer base and provide opportunities for ACS’ cloud-based solutions (see here). That gives it plenty of room for movement but cloud-based analytics and ecommerce solutions would be good additions in our view, and there is still scope to grow the healthcare portfolio, especially with rising activity in telehealth. Sage is busy selling off its designated non-core assets (see here) but it’s hard to see ACS picking up anything from Sage’s rejected product set.