Servelec Group has acquired social care software provider Corelogic in a £23.5m deal to help it move towards offering a fully integrated IT solution to health and social care.

Servelec acquired CSE Healthcare, which developed the RiO electronic patient record for community and mental health trusts in 2000, for £18.6m.

It says the new acquisition will help it to drive growth in its existing market, while expanding into new areas.

Corelogic is probably best known in the UK health and social care market for the Mosaic social care system, which offers adult, child and finance components in a single package.

In a statement announcing the acquisition, Servelec said it is: “An excellent fit with the [company] strategy to drive market share growth in existing areas and to expand into adjacent, complementary markets.

“The addition of Corelogic strongly positions Servelec to address the health and social care interoperability agenda and to offer a fully integrated solution as the market moves towards the government’s commitment to converged care for patients.” 

Corelogic reported a £1.4m profit before tax in the year ending August 2014, up 40% in comparison to the previous year, with annual revenue up 25% to £9.6m.

Corelogic has 75,000 end users and its products are used by 58 customers worldwide. It has a more than 20% market share within the UK social care sector, where its Corius reporting suite is also widely used.

Alan Stubbs, the chief executive of the Servelec Group, said the acquisition will provide the company with “opportunities to add good incremental value to the overall business” and put it in a good position to meet the government’s objectives for integrated care.

“This purchase fits perfectly with our strategy of acquiring IP, market share and expanding into adjacent business sectors.

"We look forward to working with the management team to capitalise on the exciting growth opportunities ahead,” Stubbs said.

Servelec said Corelogic founder Kevin Moorhouse will continue as an executive director following the acquisition to facilitate an effective integration into the Servelec Group.