Investment in Cirdan Imaging Limited

RNS Number : 5341N

Kainos Group plc

01 February 2016

 

ANNOUNCEMENT 

1 FEBRUARY 2016

Kainos Group plc

("Kainos" or "the Company")

Investment in Cirdan Imaging Limited

Kainos Group plc (KNOS), a leading UK-based provider of IT, consulting and software solutions, announced today that it has entered into an agreement to acquire 10% of the share capital of Cirdan Imaging Limited ('Cirdan'), a privately-owned supplier of medical diagnostic hardware and software, creating an enhanced partnership and cross-selling opportunities for both businesses. Kainos will invest £0.9 million as part of a Series B fundraising of £3.5 million led by Kernel Capital. This follows a significant investment by the Kernel Capital Growth Fund in January 2015.

Formed in 2010, Cirdan is headquartered in the UK and also has offices in Canada and Australia. Cirdan designs, manufactures and supplies software & imaging solutions for the acceleration and enhancement of medical diagnosis and addresses the market need for robust scalable 'digital workflow' products for pathology laboratories. 

In 2013 Cirdan acquired a part of GE Healthcare's business - the ULTRA Laboratory Information System (LIS) - which brought with it a blue chip healthcare customer base in the US, Canada, Australia and the Middle East. 

The fundraising will enable Cirdan to invest further in the development of the ULTRA product. Kainos' investment will enable the two companies to work closely together for their mutual benefit and it is envisaged that Cirdan could become an important reseller of Kainos' Evolve solution in the US, Canada and Australia. As part of this development, Cirdan has entered into a five year Evolve SaaS agreement carrying an annual license fee and additional potential revenue depending on platform usage.

Speaking about the investment, Brendan Mooney, CEO of Kainos, commented:

"We are delighted to have made this investment in Cirdan, which is a fast-growing and exciting medical diagnostics business.  Cirdan has already established a strong customer base and, by working in tandem, we will be able to promote Kainos' services and products, while helping Cirdan further develop its unique ULTRA proposition.  Our close relationship will open doors for both businesses, creating interesting new growth opportunities."

Hugh Cormican, CEO of Cirdan, said:

"This investment comes at an exciting time for Cirdan as we continue to expand our products into new territories.  The funding will be used to strengthen our ULTRA LIS offering and grow our customer base.  Kainos Evolve is well established in the healthcare industry and we are confident that this investment will open new revenue streams for both businesses."

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For further information, please contact

Kainos	via FTI Consulting LLP
Brendan Mooney, Chief Executive Officer
Brian Gannon, SVP Corporate Development
Investec Bank plc	[phone]
Dominic Emery / Sebastian Lawrence
Patrick Robb / Matt Lewis
FTI Consulting LLP	[phone]
Matt Dixon / Chris Lane

About Kainos

Kainos provides a market-leading comprehensive suite of digital services to healthcare providers such as hospitals and community care organisations. Its flagship Evolve Electronic Medical Records (EMR) product automates the creation, capture and handling of medical case notes and operational documents and records allowing healthcare providers to deliver better patient safety and quality of care. Evolve is used in more than 90 hospitals in the UK, helping healthcare providers on their journey to becoming a paperless environment.

 

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