Carasent (CARA) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition enables entry into Germany, Europe's largest healthcare market, with a fragmented EHR landscape and over 150,000 clinics.

• Data-AL has a strong local presence, over 1,000 customers, and deep knowledge of German EHR requirements.

• The move leverages Data-AL's expertise, customer base, and regulatory knowledge, aligning with the buyer's Webdoc product and strategic expansion goals.

• Addresses urgent demand for modern EHR systems, as most current solutions are outdated and poorly rated by users.

Financial terms and conditions

• Full acquisition of Data-AL for €8 million enterprise value, with up to €4 million additional earn-out based on future growth.

• Deal financed from existing cash reserves; signing and closing occurred simultaneously, with consolidation from November 2024.

• Data-AL reported €4 million revenue and €0.5 million EBITDA in 2023.

Synergies and expected cost savings

• Data-AL’s customer base and expertise align with existing products, supporting cross-selling, operational efficiencies, and stable recurring revenue.

• Integration expected to optimize pricing and cost structure, potentially increasing margins as seen in previous acquisitions.

• Cloud migration anticipated to double per-customer revenue, based on Nordic market experience.