Report

Craneware Group | Microsoft Alliance to bring multiple benefits

Craneware has announced the formation of an extensive alliance with Microsoft Azure, its leading cloud partner, which will leverage Azure's capabilities, increase access for customers to Craneware's products, and improve Craneware's cost efficiency. Craneware's ability to partner with Microsoft in this way is a demonstration of the strength of Craneware's position in the US healthcare market for value cycle software, and furthers its ambition to become ubiquitous in US hospitals with enhanced products, artificial intelligence (AI) powered analytics, and services. We calculate a DCF based fair value of 2,541p, 10% above the current share price which could easily prove conservative on stronger medium term revenue growth including the potential promised by this alliance. Craneware sits in the sweet spot of the structural transformation underway in the US healthcare market to value-based care which is currently also the hottest area of healthcare SaaS M&A activity.
Underlying
Craneware

Craneware is engaged in the development, licensing and ongoing support of computer software for the U.S. healthcare industry. Co.'s solutions span four product families: Patient Engagement, Charge Capture & Pricing, Revenue Collection & Retention, and Cost Analytics. The patient engagement segment provides: medical necessity & prior authorization, and patient responsibility. The charge capture & pricing segment provides procedures, pharmacy, and supplies. The revenue recovery & retention segment provides billing & claims analysis, audit management, and denials management. The cost analytics segment provides cost of care.

Provider
Capital Access Group
Capital Access Group

Capital Access Group advises companies on effective engagement with investors. Our experienced team offers market-leading access with hard-to-reach investors, including smaller institutions, pension funds and private client fund managers. These under-serviced investors are located not only in London but across the regions of the UK and Europe. We have an unrivalled knowledge of this extensive audience, to whom our published research is distributed, as well as to larger institutions. We offer this service as part of an integrated investor communications strategy to promote a company’s investment story.

Our clients, ranging from AIM to FTSE 100 companies, benefit from our professional, long-term relationships with investors. Not only do we identify and target investors, we contact them directly and relay their views back to clients with analysis, interpretation and advice. This ensures that our clients are in control of their investor engagement. The objective is to improve the reach and engagement with investors, which in turn strengthens the share price.

Analysts
Colin Smith

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