Alcidion acquires Kyra Flow from Telstra Health

Alcidion Group (ASX:ALC) signed an asset sale agreement to acquire the business and assets of the 'Kyra flow products' from Telstra Health.

The acquisition includes Kyra Patient Flow Manager, Kyra Queue Manager, and Kyra IQ, a proprietary suite of digital solutions designed to optimise patient flow and data access challenges across inpatient and outpatient hospital settings.

The transaction involves an upfront cash purchase price of $3 million, with an additional earn-out of up to $1 million subject to meeting future recurring revenue thresholds.

The upfront cost implies an attractive FY26 EBITDA multiple of 2.7x.

The acquisition is projected to be earnings accretive from its expected completion at the end of June, backed by a forecast FY26 revenue of $3.7 million—over 90% of which is high-margin, recurring product revenue—and an underlying EBITDA of approximately $1.1 million.

This move broadens Alcidion’s footprint across Australia, New Zealand, and the United Kingdom, notably expanding its presence into Queensland, Victoria, Western Australia, and Tasmania across public and private health sectors.

Through the deal, Alcidion inherits approximately 33 long-standing customers, only two of whom are existing clients, offering a prime opportunity to deepen industry relationships.

Alcidion Managing Director and CEO Kate Quirke noted that the acquisition strongly aligns with the company's growth strategy, further consolidating its position as a leading international provider of enterprise patient flow solutions.

At the time of reporting, Alcidion Group’s share price was $0.11.