The Panoply Holdings PLC, a technology-enabled services group, has announced the acquisition of healthcare transformation consultancy Difrent.
The move helps the company expand into healthcare, where 75% of Difrent’s revenues are generated. Difrent’s clients include NHSX, Department of Health and Social Care, NHS Business Services Authority, Public Health England, World Health Organisation, DEFRA and Department of Work and Pensions.
Since forming three years ago the company has experienced significant growth, and most recently reported unaudited revenues in its consulting division at £5.7m (2019: £3.2m) and unaudited EBITDA of £0.7m (2019: £0.1) for the year to 31 March 2020 (an increase of 78% and 600% respectively). Including its recruitment division Difrent delivered total unaudited revenue for the year to 31 March 2020 at £7.4m (2019: £4.3m) with unaudited EBITDA of £0.9m (2019: £0.2m) and unaudited profit after tax of £0.7m.
The Panoply said the acquisition is inline with its three year commercial vision to use a mixture of positive cash flow and shares to make earnings enhancing acquisitions to add more than £35m of revenue to the Group. It is paying a total initial consideration of £8.8m with £4.0m in cash and £4.8m in shares.
Neal Gandhi, Chief Executive Officer of The Panoply, said: “Difrent’s focus on health and social care presents an immense opportunity for us as a Group building upon the success FutureGov had already achieved in those sectors and at a time when there has never been more focus on radically transforming the way we deliver healthcare services.”
“This acquisition is immediately earnings-enhancing for the Group, and clear evidence of our continued momentum against our three-year commercial vision, following on from the acquisitions of Arthurly in June 2020 and Ameo in the last financial year.”
“As a disruptive, purposeful and forward-thinking company, the Difrent acquisition perfectly complements our strategy of acquiring best-in-class in companies who share the values and deep sense of purpose that runs through the Group.”
Rachel Murphy, CEO of Difrent, said: “When I came into Difrent I had just left the NHS, looking for a new challenge, pretty exhausted after a hefty stint leading the Empower the Person Programme with Juliet Bauer. Difrent had been a recruitment company with the recruitment founder, Steve Dhillon, who had the ambition to build a services business. It was quite the culture shock going from a £300m budget to a turnover of £2.8m!”
“For me, the selling points of joining Difrent were the freedom to crack on and build a services business, and with some cash in the bank, I could make the right permanent hires. In my head, it was a 5-year commitment. I wanted to build “the business I couldn’t find to buy services from” when I was a Director at the Department for Education and latterly NHS Digital.”
“Over the last 12 months, we have had three different companies approach us about a potential buy-out. The reason I am so keen on The Panoply as the acquirer is that they share our values and our mission. They really want to make a difference for patients, service users and citizens on a much larger scale and take on “the big boys” in doing so! User-centred design sits at the heart of everything they do.”
