Hello, everyone, and welcome. This is Daniel Öhman speaking, CEO of Carasent. Today we will go through the acquisition of Medrave, and we will give you some deeper information about the company, the strategic rationale and also some words about the transaction. You can go to the next slide. Just a quick glance at Carasent. This gives us another entity within the group and in line with our growing strategy to implement both through organic initiatives, but also through M&As. We have now executed on that strategy. You can go to the next slide. This company gives us another product into our offer and to our existing customer base.
We'll go a little bit deeper into the company later on in the presentation. Just a quick description of what Medrave do. They develop a software which provides the caregivers' report in order to analyze their working methods and improving their medical qualities. Also this gives us access to the public sector, which could be of benefit for us in the mid-term. This is not a customer group that we have been working with as of today in that way that Medrave has. Also it gives us a complementary offer when we are entering to the Norwegian market where Medrave also have their focus.
They have a small part of their revenues coming from Norway, and they see a great potential on expanding into these markets. You can go to the next slide. As I previously said, and as you probably well know now, our growing plan is based upon three things. Organically, which we have been able to do for many, many years. We still see great traction for Carasent's products in our existing markets. We also see great potential in growing organically into new geographies with our product offer. We also want to accelerate our growing plan through M&As, where we now have been doing three acquisitions the latest year. This gives us good track record on executing on our M&A strategy.
Also now when we are starting to get some entities within the group, we also see great potential in taking out synergies throughout those entities. We are getting access to new customers with our different offers, and it's starting to create a structure where we can take out those synergies and throughout cross-sale potential and also synergies in our cost base. You can go to the next slide. Just a quick picture on our history of growth. This adds another NOK 32 million to our run rate with the acquisition of Medrave. You can go to the next slide. Medrave as a company, who are they and what kind of company are they?
It's like I said earlier, it's the number one healthcare software provider for clinical performance analysis. Its main customer base is primary care. Its purpose is to improve quality within those clinics. They have little to none competition in the market, so they are a very niche company, and also a company with a very high renown in the market. The company was founded by two doctors back in 2007, Per and Svein. The headquarters is located in Stockholm, and they also have an office in Norway, where Svein is based. They also have integrations to up to 25 different EMR systems.
They have a seamless integration so that they can provide those reports to the clinicians without any effort from the caregiver. Also they have been showing great growth the latest year, and had approximately 5%-15% revenue growth the last four years. You can go to the next slide. I quickly mentioned it, but the customer base is including today 260 different customers. Those customers, they have approximately 1,600 clinics. Which were of 60% of those customers is publicly operated, and 40% is privately operated.
They have more or less all of the primary care within Sweden, which gives us great access to a customer base with our current offers within Carasent. Since they have a very niched and a very sticky product, they only had less than 1% of churn the last years. Also, 16 out of the 21 regions within Sweden are using this software for their GPs. They also have the biggest private healthcare providers using their systems. For example, Capio and Praktikertjänst, and also Carlanderska. You can go to the next slide, and I think I leave the word to you, Svein Martin.
Yes. Thank you, Daniel Öhman. Just to introduce myself, I'm Svein Martin Bjørnstad, the CFO of Carasent, and I will go through this slide and quickly looking at the highlights of the transaction, where we acquired 100% of the shares in Medrave. As we mentioned, Medrave is a Scandinavian leader within their niche, with NOK 23 million in revenues and NOK 6 million in EBITDA during the last twelve months, where almost all revenues are recurring in nature. Medrave has grown consistently at around 15% during the last few years, and we see great potential in accelerating this growth, going forward as part of Carasent.
Looking at the transaction details, the purchase price was NOK 134 million, where that corresponds to an enterprise value of NOK 125 million plus the net cash position, and 82% of that will be paid in cash upon closing, and the remaining part will be paid in shares through reinvestment by key employees, which will also undertake a lockup agreement of 15 months. The acquisition price reflects a EV/sales multiple of 5.4x on LTM basis, and the transaction was signed yesterday, and completion is expected in January 2022. The transaction, as we have mentioned, has a very strong rationale for Carasent.
First of all, we add the great product to our portfolio that will strengthen our total offer and bring more value to our customers. Secondly, we see potential for cross-sales through several avenues. Firstly, this is a type of product that we have received a frequent demand from our customer base, for example, within the specialist healthcare segment, both in Norway and Sweden. We expect positive response from the customers that we have today with Webdoc and our other products. We also see that through combined efforts in the Norwegian market, we can accelerate growth for Medrave as Medrave can benefit significantly from a combined commercial organization and go-to-market strategy as we launch Webdoc in Norway.
This will also benefit Carasent through a more unique and improved offer in the Norwegian market. Another driver, as Daniel mentioned, is Medrave's highly attractive customer base where they have almost all primary care clinics in Sweden on the customer list. That's a segment where we see strong potential for growth within Webdoc. In summary, a lot of cross-sell potential and growth synergies. In addition to that, we see potential technical synergies as Medrave has highly competent employees with complementary expertise to the Carasent organization today. Finally summing up, we see this transaction as another step in executing on our growth plan.
We continue to focus on driving growth through the three main dimensions being new products, new segments, and new markets. This has resulted in attractive growth rates during the last few years and there is potential to continue this going forward, where we have a lot of opportunities for both organic growth and more of value-generating transactions such as this. With that, we can open for questions. We have received a few questions here. I can read them, and maybe you can take the first one here, Dennis. How big percent of your current customer base is already using Medrave M4 according to your estimates? If the percentage is low, a follow-up, how come your customers have not purchased the software as a standalone module before?
In our primary care segment, the customers that we have there today, almost everyone is using this service. We do see some cross-sales potential since Medrave has been aiming at the specialist care segment, which we are very strong in and Medrave is not. The upside for the existing offers in Carasent is to sell to the customers that Medrave have that isn't using Webdoc today, for example.
Great. Next question. As the software is module-based, how fast until you can integrate it in your overall offering? Do you expect a jump in sales growth in 2022 because of the cross-sale opportunities?
What were the first question there?
As the software is module-based, how fast can you integrate it in your overall offering?
Yeah. It won't take that much time. We already have a full integration into Webdoc as of today. We see synergies in integrating this service into our Norwegian offer, Ad Curis, within the entity Avans Soma today. I wouldn't say that it would take so long. In 2020, we maybe don't see that much synergies in the cross-sale potential, but we do see synergies in entering the Norwegian market together in combining our offers to the same customers, which will give us an accelerated growth rate when we're going to the Norwegian market.
The next question is regarding the Norwegian part of Medrave, which had more of a volatile sales history, and what is the reason for that, especially considering the smooth development for the total revenues? I can answer that. The Norwegian part of Medrave is, of course, a smaller part of the company today, and they haven't really had a commercial organization on the ground. That being said, the Norwegian market has not been as mature as the Swedish market for products such as this. That's why we also see potential in growing in Norway together as we can add more of a commercial organization to the Medrave product as well.
Another question. Could you expand a little on the consideration shares? How the reinvestment works? Is it new shares that you give key employees? Yes. The key employees will receive approximately 25% of their consideration in Carasent shares. Next question. Public sector in the midterm, you mentioned, Dennis, could you expand potential in the midterm within the public sector? Could you expand a little on this?
Yes, I can. If we look into the primary care market today, we more or less only have primary care clinics within Västra Götalandsregionen in Sweden today, and we see great potential in growing this segment in the Stockholm region, since they this year has communicated a strategy where they want to tender more of a data sharing infrastructure where products like Webdoc can operate in. With the access to all the primary caregivers in the region, it give us benefit to do the cross-selling of Webdoc into this segment. Although when I say midterm, this won't happen the next year, although we could probably get in dialogue with those customers during the next year.
I would say this is things that would start to happen, maybe in two or three- years.
Great. Next question, I can take this one. Is it true that Medrave has not capitalized any R&D costs, therefore you can say that EV-EBITDA multiple is the same as the EV-EBIT? Yes, that's correct. Medrave hasn't capitalized any R&D cost historically. You mentioned 15% growth between 2017 and 2020. How has the growth been in Medrave year to date versus last year? We can say that has been in a similar rate as historical figures. Given the 40-60 exposure to private public is only 40% of Medrave client base approachable for Webdoc.
As of today, yes.
Yes, they also have almost all the private primary care clinics in Sweden today.
Yeah.
Expected revenue growth and EBITDA margins for Medrave going forward. We haven't provided any guidance related to that, but we see potential to accelerate the growth as mentioned. How quickly can you begin cross-selling? Can you elaborate on the synergies? Maybe Dennis, you want to take that.
Yes. I think we were through this question some earlier. We do see potential in cross-selling this kind of offer together with our Norwegian offer and also when we are entering the Norwegian market. We see a great potential in joining forces when we are approaching the customers in Norway. In Sweden in short term, if we look at the region where we are present today in the primary care segment, we can start as early as next year. The greatest potential in the long term is within the Stockholm region. We will be able to start cross-selling already next year within the Västernorrland region.
Okay, great. That was all the questions we received. Thank you all for dialing in.
Yeah. Thank you very much, and have a great day. Bye-bye.
Bye-bye.