Healthcare software developer Craneware plans to raise £80 million by issuing new shares to fund acquisitions.
The Edinburgh firm said it had identified a “small number” of takeover targets which it said would expand the firm’s US customer base, add new proprietary technologies and scale up the business.
It said one of the potential acquisitions was currently up for sale and that Craneware’s accelerated bookbuild would help it jump the queue of would be buyers.
The share offer would represent 20% of Craneware’s share capital. CEO Keith Neilson, CFO Craig Preston and chairman Will Whitehorn have pledged to invest a total of $315,000 in some of the new shares.
In an announcement to the London Stock Exchange, the AIM-listed firm said: “These potential opportunities vary in size and complexity and the Board does not expect to complete all of them. The Board believes that executing the Placing would position the Company to best be able to take advantage of the acquisition opportunities.
“In particular, one of the possible acquisition targets is in a sale process and the placing is an important step to potentially gaining exclusivity and undertaking due diligence in that process.”
Craneware’s software aims to help hospitals and other healthcare providers keep costs down by managing resources efficiently. It is targeted primarily at the ‘value-based healthcare’ US market. The firm reported a $71.4 million turnover for the last financial year.