Edinburgh's Craneware lands $5.2m US hospitals deal
This article contains affiliate links. We may earn a small commission on items purchased through this article, but that does not affect our editorial judgement.
The Edinburgh-based firm, which specialises in developing billing software for the US healthcare market, said the “significant” deal, with an existing customer, builds on a seven-year contract originally secured in April 2014.
• READ MORE: Craneware hikes dividend after 23% jump in profits
Advertisement
Hide AdAdvertisement
Hide AdThe new agreement is expected to deliver additional revenues of $3.7m as the hospital network rolls out more of the Aim-quoted company’s services across its facilities, along with a further $1.5m boost on the back of an extension to the existing deal.
Chief executive and co-founder Keith Neilson said: “The extension of the solution set provided to this customer and increasing the duration of the original contract underlines the value our solutions bring to our customers.
“We have a very positive relationship with our customers, demonstrating sustainable value; we now look forward to this extension of our working relationship with this customer to over a decade.”
The deal comes just weeks after Craneware, which employs about 250 people, reported a 23 per cent jump in pre-tax profits to $7.5m for the six months to the end of December, on revenues 16 per cent higher at $26.8m.
Neilson told The Scotsman at the time of the results that the company was on the look-out for more acquisition opportunities, having struck its most recent deal in 2014 with the takeover of Ullapool software outfit Kestros, but noted that it was a “quite picky” buyer.