Perth, Western Australia (PRWEB) May 03, 2014
Perth Based technology entrepreneur, Nathan Buzza today announced that his Private Equity Firm had completed its divestment of its interest in publically listed healthcare business Azure Healthcare. Buzza’s Private Equity firm was previously the second largest shareholder in Azure Healthcare.
Since Buzza partially underwrote a right Issue at 3.3 cents in December 2011, the stock has climbed to a high of 42 cents, settling at 38.5 cents at the close of trade today, reflecting a twelve fold increase in market capitalization in just over two years.
Buzza was well known for his CommtechWireless business, which developed clinical middleware solutions that were deployed globally. In 2008, Buzza divested CommtechWireless to Amcom Software, which was acquired by USA Mobility for $USD163.8m.
Azure Healthcare is a manufacturer of nursecall and clinical workflow solutions.
When asked about his divestment of Azure Healthcare, Buzza commented “I have been very happy with the turnaround of Azure Healthcare over the past 24 months. The Half Year Results, Revenues increased from $11.3m to $16.0m. I have been consulting on a full time basis to the business over the past two years, focussing primarily on rebranding the business from a manufacturer of nursecall equipment to a clinical workflow solutions business. Much of this focus was built upon the success that we enjoyed within the CommtechWireless business.”
The American Health Care Association has projected that there will be a shortfall of 142,000 nursing staff by the end of this decade. Simply put, we need to do more with less in healthcare.
“The turnaround of Azure Healthcare has been nothing less than stellar and one of the most impressive corporate turnarounds in recent years. It has been a privilege to be so intimately involved in the transition of Azure Healthcare.
However, I believe that the time has come to move on from Azure Healthcare and look for new opportunities. Specifically, the next battleground will be in clinical decision support middleware – this requires a unique skill sets and will be the next big ‘game changer’ in healthcare. I am looking forward to making an announcement over the coming weeks.
I wish the management team and the board all the very best in the future.”
Within Azure Healthcare’s peer group, the company largest global competitor Ascom is trading with a PE ratio of 15.38x, whereas Azure Healthcare is trading at almost double this at 28.39x.
When asked about the disparity in ratios, Buzza commented “(the shareholders) must be factoring in continued growth on both the top and bottom lines. With any investment, you always back the management team based upon their track record. For myself, I believe that a lot of the upside potential has already been realised, hence my decision to exit my position and look for new opportunities”.