Acquisition of Medical Imaging

RNS Number : 5336A

EMIS Group PLC

23 December 2014

 

23 December 2014

EMIS Group plc

("EMIS Group" or "the Group")

Acquisition of Medical Imaging (UK) Limited and MIDRSS Limited

The Board of EMIS Group is pleased to announce the acquisition of Medical Imaging (UK) Limited and MIDRSS Limited (together 'Medical Imaging'), leading provider of services delivering diabetic eye screening and ophthalmology imaging  to the NHS in England and with a growing presence assisting Ireland's national health service, the HSE. The acquisition is in line with EMIS Group's strategy of providing cross-organisational healthcare systems and further enhances its position in diabetic eye screening.

At the time of the Digital Healthcare acquisition in August 2013, the Group stated that it saw opportunities in the provision of a full end-to-end managed diabetic retinopathy screening service. The acquisition provides the Group with an opportunity to further support the NHS and patients through the delivery of services in an area closely aligned to its existing software systems.

The purchase consideration, net of cash acquired, is £6.5 million in cash, in addition to £0.5 million which is deferred until December 2015. Up to £2.5 million of additional consideration is payable in cash on the attainment of certain performance targets relating to financial year 2016. The initial £6.5 million will be funded from the Group's existing bank facility. The acquisition is expected to be earnings enhancing in the first full year of ownership.

Medical Imaging is based in Worcester and for the year ended 30 April 2014, Medical Imaging reported profit before tax of approximately £1.3 million on revenue of £6.3 million. Over 90% of Medical Imaging's revenues are of a recurring nature.

Medical Imaging's principal area of business is providing services to manage and support systematic population-based diabetic eye screening programmes. It operates principally in England where it has 63% of the outsourced market (14% of the total market), and provides screening services to in excess of 500,000 patients across 12 diabetic eye screening programmes. It is also actively developing its presence in Ireland.

Chris Spencer, CEO of EMIS Group said: 

"I am delighted to welcome Medical Imaging to EMIS Group. It enhances our already strong position in diabetic eye screening, achieved through the 2013 acquisition of Digital Healthcare. This is a growing niche market. We expect the acquisition to be not only earnings enhancing in 2015 but also to help prevent blindness in the increasing number of  people suffering from diabetes."

There will be a conference call for analysts at 09.30 this morning. Please contact Giles Robinson at MHP Communications on 0203 128 8788 for details.

[ENDS]

For further information, contact:

EMIS Group plc                                                                                Tel: [phone]

Chris Spencer, CEO

Peter Southby, CFO

www.emis-online.com 

Numis Securities Limited (Nominated Adviser & Broker)          Tel: [phone]

Simon Willis/Adrian Trimmings/James Black

MHP Communications                                       

Reg Hoare/Giles Robinson/Charlie Barker                                        Tel: [phone]

Notes to Editors

EMIS Group is the UK leader in connected healthcare software and services. Its solutions are widely used across every major UK healthcare setting from primary and community care, to high street pharmacies, secondary care and specialist services. Through integration and interoperability, EMIS Group helps clinicians share vital information, facilitating better, more efficient healthcare and supporting longer and healthier lives.

EMIS Group serves the following healthcare settings:

•           Primary & Community Care, under the EMIS brand, the UK leader in clinical IT systems for GPs and commissioners. EMIS Group products, including the flagship EMIS Web, hold over 40 million patient records and are used by nearly 6,000 healthcare organisations, including community-based teams. EMIS's patient.co.uk website is the UK's leading independent provider of patient-centric medical and well-being information and related transactional services.

•           Community Pharmacy, under the Rx Systems brand, the UK's single most used integrated community pharmacy and retail system.

•           Secondary & Specialist Care, under the Ascribe and Digital Healthcare brands. Ascribe is a leading software provider to 70% of the UK's NHS Acute Trusts and Boards, focused primarily on Hospital Pharmacy, A&E (holding over 30 million patient records), Mental Health and Patient Administration Systems.  Digital Healthcare is England's leading provider of diabetic eye screening and other ophthalmology-related solutions.

These markets are also supported, under the Egton brand, by the provision of specialist ICT infrastructure, software, hardware and engineering services.

 

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