Rapidly expanding managed service provider The Panoply has acquired Nudge Digital for around £5m in cash and shares to expand into new sectors.
This March, The Panoply acquired Keep IT Simple (KITS) - a provider of services to public and private sector clients - for £26m.
Bristol-based Nudge is primarily active in the pharmaceutical industry, health sector and, more recently, to local authorities. It has a particular focus around care pathways.
Founded in 2006, Nudge has built up a strong client base including major pharmaceutical companies Roche and Galderma, private healthcare provider Bupa, the Greater London Authority and Hackney and Westminster councils in London.
AIM-listed The Panopoly said the deal strengthens its overall position in healthcare and provides an entry into the pharmaceutical industry, at a time when the NHS is looking at precision medicine, risk stratification and data-driven personalised care plans for patients.
Nudge has seen sales grow 150% over the last two years, and for the year ended 31 March 2021, turnover reached £2.7m, with adjusted EBITDA of £1m. Nudge enters The Panoply with booked business of £2.5m.
Neal Gandhi (pictured), chief executive officer of The Panoply, said: “We welcome Nudge to the group at a time when the NHS is considering its approach to personalised healthcare, and care pathways are coming into sharp focus as the government looks to deliver on its social care reform agenda.”
He added: “Pulling together Nudge's experience in private healthcare and pharmaceuticals with our existing experience across the NHS and local authority adult social care, gives us a strong base to become a leader in the healthcare sector in the UK.”
Luke Aikman, chief executive officer of Nudge Digital, said: “In recent months, Nudge has started to win contracts that are impactful and larger in size than ever before.
“By joining The Panoply we can continue on that trajectory in the knowledge that we have a balance sheet that reassures our clients, as well as a much larger team to draw upon to fulfil their requirements.”
The Panoply was founded four years ago with two employees and now employs well over 400 plus contractors, with a market capitalisation of around £140m in December 2020 - compared to the £30m valuation at its IPO two years ago.
