UK-based healthcare information systems provider Clinical Computing, who delisted from AIM in April 2012 (see here) following a long troubled period during which it was hit by NHS spending cuts and a decline in new business, has sold off the profitable Hydra part of the business.
Clinical Computing acquired portfolio project management software provider Hydra five years ago and turned the loss making business into a profitable one with respectable recurring revenue (see here), and private and public sector clients such as Willis, Virgin Money, Experian and Leeds County Council. It has gone to eTask Technologies , a Latin American-based but international provider of project management software. The acquisition will boost eTask’s existing UK business and Hydra’s portfolio management software will fit with its project management and online professional services automation (PSA) products. Financial details were not disclosed; ICON Corporate Finance advised on the deal.
There appears to be rising activity in the online PSA part of the market. Unit4’s JV FinancialForce andKimble - both cloud pure-plays - report increased PSA business. Kimble is talking of a 600% rise in revenue this year (although from a low case) and says deal sizes are getting bigger.