The UK subsidiary of Civica, which provides IT systems and business process services primarily for the public sector, has acquired PSCAL for an undisclosed amount. Gloucestershire-headquartered PSCAL supplies financial management software and related services for the National Health Service (NHS). It currently supplies 200 primary and secondary health care organisations.

The acquisition has been made to extend Civica’s presence in the market.

A Civica statement says, “Financial management is increasingly critical for health care providers who face rising demand for services set against increased spending constraints.”

Simon Downing, chief executive of Civica, comments, “PSCAL’s customer base, product set and specialist insight extend our capabilities at a time of significant structural, demographic and financial change in the health sector.”

Civica was initially set up through a management buy-out from the Sanderson Group in 1999, in a deal that was backed by venture capitalist group Alchemy Partners. After being listed on AIM between 2004 and 2008 it was then delisted as part of a £190 million acquisition by private equity firm 3i.

Lizo Ngqobongwana, director at PSCAL, says that the deal is an ‘exciting step’ for its customers employers and partners. He adds, “From GP commissioning and payment-by-results to patient level costing and service line reporting, timely and accurate financial management has never been more important in the NHS.”