Home / Deals / Arma Partners advises Allocate Software, a portfolio company of Hg and Vista, on its sale to RLDatix, backed by Five Arrows and TA Associates

Arma Partners advises Allocate Software, a portfolio company of Hg and Vista, on its sale to RLDatix, backed by Five Arrows and TA Associates
Jun 2021
(a portfolio company of Hg and Vista Equity Partners)
acquired by
(backed by Five Arrows and TA Associates)
$1,355 million
  • Sector: Digital Health; Application Software
  • Deal Type: Strategic Deals; Private Equity Deals
  • Engagement type: Sellside
  • Size: $1,355 million
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Arma Partners is pleased to announce that it has acted as financial advisor to Allocate Software, a leading international provider of Human Capital Management (HCM) solutions that help healthcare organisations deliver safe and effective care, on its sale to RLDatix, the international leader in governance, risk and compliance (GRC) solutions for healthcare.

With the acquisition of Allocate, RLDatix will combine its industry-leading patient safety, risk, compliance and provider management capabilities with Allocate’s leading workforce management solutions to enable healthcare organisations to shift from reactive risk management to proactive prevention, while creating a critical link between patient safety, human capital management, regulatory-driven compliance and risk management.

Combined, RLDatix and Allocate have more than 5,000 customers in 26 countries. Each month, 1.2 million staff utilise Allocate solutions to manage their working lives, over 1.4 million temporary staff shifts are filled and over 8 million hours of nursing care are redeployed for safety-related purposes.

This transaction highlights Arma Partners’ deep expertise in Digital Health and HCM software and our track record of successfully executing landmark transactions on behalf of private equity investors. Having advised both Allocate and RLDatix previously on their respective recapitalisations in 2018, the transaction also demonstrates Arma’s long-term relationship-driven approach.

  • Founded in 1991 and headquartered in the UK, Allocate Software is a leading international provider of Human Capital Management (HCM) solutions, supporting the operational and administrative needs of health, care, defence and commercial sectors
  • Each month, 1.2 million staff use Allocate Software’s SaaS solutions to manage their working lives, over 1.4 million temporary staff shifts are filled and over 8 million hours of nursing care are redeployed for safety-related purposes
  • The company has more than 700 employees and serves over 800 clients in the United Kingdom, Sweden, Denmark, Germany and Australia
  • Founded in 1986 and headquartered in Chicago, RLDatix is the international leader in governance, risk and compliance (GRC) solutions for the healthcare sector
  • The company has more than 700 employees in 6 offices across 5 countries
  • The company was formed from the merger between RL Solutions and Datix (Jul-18) and is owned by Five Arrows and TA Associates
  • With over 4,500 customers across 19 countries, RLDatix has processed over 250 million patients
  • Allocate Software is jointly owned by Hg, who has been an investor since 2014 after taking the company private, and Vista, who invested in 2018 as part of a recapitalisation
  • The company has continued to deliver double-digit organic growth, expanded internationally and made several key strategic bolt-on acquisitions in recent years to broaden its product offering
  • With the acquisition of Allocate Software, RLDatix will combine its industry leading patient safety, risk, compliance and provider management capabilities with Allocate Software’s leading workforce management solutions
  • The combination will enable healthcare organisations to shift from reactive risk management to proactive prevention, while creating a critical link between patient safety, human capital management, regulatory-driven compliance and risk management
  • RLDatix and Allocate Software will have a combined customer base of more than 5,000 in 20 countries, and the transaction will cement RLDatix’s position as the global innovator in healthcare GRC
  • Arma delivered an outstanding outcome for Hg and Vista in our capacity as joint financial advisor together with William Blair
  • Arma worked seamlessly with William Blair to manage the preparation phase in a very short timeframe as well as the initial counterparty interaction
  • During the final phase of the process, Arma led all interactions with the selected bidders and managed the due diligence workstream which was completed in 7 days
  • Arma successfully maximised competitive tension during the final phase by maintaining a level playing field, which resulted in all bidders increasing their final offers significantly
  • This transaction highlights Arma Partners’ deep expertise in Digital Health and HCM software and our track record of successfully executing landmark transactions on behalf of private equity investors
  • Having advised both Allocate Software and RLDatix previously on their respective recapitalisations in 2018, this transaction also demonstrates Arma’s long-term relationship-driven approach
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