What did Alcidion Group (ASX:ALC) acquire from Telstra Health?

Alcidion Group (ASX:ALC) signed an asset sale agreement to acquire the business and assets of Telstra Health's 'Kyra flow products'. The acquisition includes Kyra Patient Flow Manager, Kyra Queue Manager, and Kyra IQ.

How much is Alcidion Group (ASX:ALC) paying for the Kyra flow products?

Alcidion Group (ASX:ALC) is paying an upfront cash purchase price of $3 million. There is also an additional earn-out structure of up to $1 million, which is strictly contingent on the acquired business meeting future recurring revenue thresholds.

What are the key financial metrics and valuation multiples of the Kyra acquisition?

The Kyra flow products are forecast to generate $3.7 million in revenue and approximately $1.1 million in underlying EBITDA for FY26. The upfront $3 million purchase price implies a relatively cheap valuation multiple of 2.7x FY26 EBITDA.

Will the Telstra Health asset acquisition be instantly profitable for Alcidion Group (ASX:ALC)?

Yes, management projects that the acquisition will be earnings accretive from its expected completion at the end of June 2026. This immediate profitability is heavily supported by the fact that over 90% of Kyra’s forecast $3.7 million FY26 revenue is high-margin, recurring product revenue.

How does the Kyra acquisition change the investment thesis for Alcidion Group (ASX:ALC)?

This deal strengthens Alcidion's investment thesis by shifting its revenue mix further toward high-margin, predictable recurring revenue. It transforms the company into a more dominant, scaled player in the enterprise patient flow market across Australia, New Zealand, and the UK.

What are the main bull and bear points for Alcidion Group (ASX:ALC) after this news?

The main bull point is the cheap acquisition multiple (2.7x EBITDA) adding immediate, high-margin recurring revenue and 31 entirely new enterprise customers. The primary bear point is the integration risk; Alcidion must successfully transition these legacy Telstra Health clients without losing them to rivals.

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Alcidion acquires Kyra Flow from Telstra Health

Written by Heidi Cuthbert Published May. 18 2026Last Updated May. 18 2026

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.