Craneware completes $400 million acquisition of US software company Sentry

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Craneware, an American healthcare specialist based in Edinburgh, has completed the acquisition of Sentry, a Florida-based pharmacy software company, for $400 million.

The move represents a significant expansion for the company, giving it access to subsidiary Sentry Data Systems’ customer base of approximately 10,000 hospitals, pharmacies and clinics, including more than 600 US hospitals.

Craneware now serves nearly 40% of US hospitals and more than 10,000 clinics and retail pharmacies of all drugstore brands, as well as local community pharmacies and clinics.

It hopes to provide “far-reaching actionable insights” to aid in operational and strategic decisions.

Craneware’s Pharmacy ChargeLink solution enables US healthcare providers to administer accurately coded hospital medications, billed and reimbursed at an optimal level.

Algorithms compare purchased units with billed and refunded volume to help organizations identify charge capture issues faster and better manage potential compliance risks.

Thousands of hospitals and care centers across the country rely on Sentry’s integrated platform to simplify the complexities of pharmacy supply, usage and compliance.

Sentry generated revenue of $92 million and adjusted earnings — unaudited pre-tax earnings — of $23 million for its fiscal year ending December 31, 2020.

Craneware said the acquisition was a “compelling strategic fit,” given its focus on pharmaceutical operations within U.S. healthcare providers; largest cost area for US hospitals outside of labor.

He said there are further business opportunities in enhancing Craneware’s Trisus product suite, giving it access to Sentry’s 147 million patient records, collected over a 17-year period.

The deal involved $312.5 million in cash and $87.5 million in stock for the seller, with the remainder going to Sentry management.

It was funded by Craneware’s existing cash resources, a new credit facility of up to $140 million and an equity offering.

“Faced with growing pressure to better manage costs and improve patient outcomes, US healthcare providers must effectively use automation to generate actionable insights that improve operational efficiency and compliance, resulting in by sustainable margins that can be reinvested in providing better care to those in need,” said Craneware Managing Director Keith Neilson.

Travis Leonardi, Managing Director of Sentry Data Systems, added, “I am thrilled that Sentry is now part of Craneware to continue its mission of improving the quality of healthcare and reducing the total cost of care.

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