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Third party research

Dedicare: Enters UK via acquisition - ABG

Dedicare Group

This is a third party research report and does not necessarily reflect our views or values

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Acquires Templars Medical Agency Ltd.

Sees it as a platform to build from in UK and Ireland

Dedicare’s vision is to become a leading player in Europe

Templars had sales of SEK 45m in ‘21/’22, 11% EBIT margin
Dedicare announced today that it is acquiring the UK based recruitment and staffing company Templars Medical Agency. Templars is based in the northern part of England, close to Manchester and Leeds but also has assignments in Scotland, Ireland, Falkland Islans, Gibraltar and St. Helena. In the fiscal year ‘21/’22 it had sales of SEK 45m with an EBIT-margin of 11%, meaning it will add roughly 3% on sales and 4% on EBIT towards our estimates for the first full year. The acquisition will be consolidated from 1 October. We have understood that Templars has contracts with all relevant health organizations, like the NHS, and Dedicare will mainly bring its expertise in online marketing and digitalisation to aid its growth further. A strength of Dedicare is its broad geographical reach, which allows for employees to choose exciting career journeys. With the addition of templars a brand new opportunity will arise for aspiring doctors and nurses to pursue a career also in UK. Furthermore, Dedicare sees the acquisition as a platform to build its reach into the UK from and we wouldn’t be surprised if it pursues additional acquisitions in that market going forward.

Upfront payment of roughly 4x EBIT via cash and shares
The deal structure consists of an upfront payment of GBP 1.8m, of which 1.4m will be paid in cash and 0.4m will be paid in shares. In addition, an undisclosed earn-out has also been agreed that is based on the earnings performance in the next two years. The upfront payment equals roughly 4x LTM EBIT and we estimate that the full deal is in the range of 5-6x EBIT depending on the future performance.

First step taken towards long-term vision
Dedicare has an outspoken vision of becoming one of Europe’s leading recruitment and staffing companies in healthcare and this is ...
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