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Midven sells Dynamic Change for £9m

Midven sells Dynamic Change to Allocate Software for up to £9.0 million over three years reaping 8x returns on investment. This includes £1.6 million of cash and receivables acquired with the business on completion.

Midven acquired the risk and performance management software vendor in 2003,  and during its holding period has seen the company’s customer base grow from two to 121 customers.

Dynamic Change is a UK-based software-as-a-service (“SaaS”) provider of regulatory compliance, corporate governance, risk and performance management for the UK healthcare market.

Allocate Software provides workforce optimisation software for companies with large and multi-skilled workforces, globally.

Mil Milojevic and Hugh Ashley, Founders and Managing Directors of Dynamic Change, said: “The strategic fit between Allocate and Dynamic Change is excellent for both customers and staff.  Regulatory compliance and business intelligence are rapidly emerging as some of the most exciting areas of the software market for healthcare and the enlarged group is well positioned to exploit this opportunity.  We look forward to contributing to Allocate’s continued strong growth.”

Commenting on the Acquisition, Ian Bowles, CEO of Allocate, said: “With this Acquisition we continue to broaden Allocate’s application portfolio for the healthcare sector which will now include regulatory compliance corporate governance, risk and performance management. We will also gain domain expertise in Software-as-a-Service. We believe this is an attractive opportunity to achieve additional visibility in our top-line growth and increase our recurring revenue base.”

Roger Wood, Director of Midven, said this is yet another example of how wellmanaged venture capital funds with a regional focus can make excellent returns for their investors from investing in early-stage technology businesses.
“This is the fourth highly profitable exit from the Advantage Fund, and the second in six months. This demonstrates that despite the economic environment, fast growing and profitable companies are still highly attractive acquisition targets. The West Midlands region is really proving itself to be a good home for such businesses and with significant new funds to invest we hope to help even more of them achieve similar success.” he said.