Sheffield tech group to acquire software provider in £20.3m deal

Servelec, the Sheffield-headquartered technology group, has agreed to acquire the Synergy business from Tribal Group for £20.3m.

Synergy provides software products to local authorities that help manage critical information within Children’s Services including education, safeguarding and children’s centres.

The business’ software is currently being used in over local authorities in England and Wales.

From 2020, legislative changes in Children’s Services will see all local authorities becoming responsible for children’s community health.

Servelec said this acquisition well position itself well to benefit from this changing environment.

In the year ending 31 December 2015, Synergy recorded revenues of £6.3m, with a pre-tax profit of £2.7m.

The proposed acquisition includes the intellectual property rights for the Synergy suite, the transfer of 63 employees under the Servelec banner and a property lease on Synergy’s current premises.

The deal is being financed through a combination of a new bank facility from Lloyds Banking Group as well as existing cash reserves.

Servelec expects the acquisition, which will be completed in March 2016, to be earnings enhancing in the first full year of ownership.

Synergy will become part of Servelec’s social care business unit, a constituent part of Servelec Health & Social Care segment.

Alan Stubbs, CEO of Servelec Group said: “I am delighted to announce the proposed acquisition of Synergy, which is another step forward by Servelec to capitalise on the growth opportunities offered by the Converged Care agenda.

“Building on a strong year for Servelec’s Social Care business, driven by the successful acquisition and integration of Corelogic, Synergy will allow our combined Local Government clients to improve child care by having a single view of a child’s needs.

“It strengthens the suite of products available to new and existing customers and fits within our strategy of acquiring complementary businesses that will provide both short-term and long-term benefit to the Group as a whole.

“With our customers and potential customers needing the broader picture of child welfare to provide the care and support required, our purchase of Synergy gives Servelec the strongest and broadest offering in the market.”

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