SERVELEC is to buy a leading software provider to the adult and children’s UK social care market for £23.5m, its first acquisition since its IPO last December.
Sheffield-based Servelec said the purchase of Corelogic will enable it to cater to the Government’s converged care agenda which will merge social, community and mental care.
Analysts said it looks like a sensible deal and will increase the group’s critical mass in its core market. Corelogic provides social care case management software and financials to the UK market.
It has a 22 per cent market share and won nine out of the 11 tenders it bid for in its last financial year.
Servelec’s CEO Alan Stubbs said: “Local authorities pay for care for children with learning disabilities, for children in care homes, for adults who have drink and alcohol problems and Corelogic handles the financial control and delivery. The Government is trying to encourage patients to be looked after at home or in care homes as it’s so much cheaper than a hospital bed. It can cost £1,000 a night in an acute hospital and £100 a night in your home.
“This converged care agenda means more will be done in the home.”
He added that Servelec is focusing on positioning its software to align with the Government’s agenda.