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.
