Advanced Computer Software Plc, provider of software and IT services to the primary care sector, has acquired Redac Holdings Limited, owner of COA Solutions ("COA"), from Alchemy Partners for a total consideration of £100m. The transaction is financed through ACS's cash resources and new bank debt.

COA has been a supplier of software solutions to the public and private sectors for over 25 years, with in excess of 5,000 direct and indirect customers in Healthcare, Public and Emergency (blue light) services and the private sector. COA provides software products for accounting and budgeting, data analysis, business intelligence (including patient pathways), compliance, billing, executive dashboard, HR, payroll, procurement, document management and business process outsourcing (BPO) services.

It says it will get immediate earnings enhancement and cash generation with strong recurring revenues, and that it significantly strengthens ACS's position within the healthcare and public-sector markets; provides access to decision makers, creating significant opportunities for cross selling both ACS and COA products. The £100m cash consideration is funded through ACS's cash resources and £55m of new bank facilities.