EMIS Group plc Acquires Indigo 4 Systems Limited
The Board of EMIS Group, the UK leader in connected healthcare software and services, is pleased to announce the acquisition of Indigo 4 Systems Limited ("Indigo 4"), a leading supplier of clinical and administrative messaging and order communications solutions to healthcare organisations. The transaction furthers the Group's strategy of providing comprehensively connected healthcare systems.
The acquisition, from the founders, brings EMIS Group an extensive customer base in the secondary care sector. In addition it delivers a complete set of platform-neutral communication and data translation tools. These extend EMIS Group's existing proprietary capabilities in the requesting, messaging, translation and delivery of electronic clinical and administrative data across primary and secondary care. The initial purchase consideration, net of cash acquired, amounts to £3.2m, payable in cash from the Group's existing resources. A further £0.5m is payable in cash on the attainment of certain future milestones. The acquisition is expected to be immediately earnings enhancing.
In operation since 1991, Indigo 4's 32 employees are based in Sheffield, near the Group's existing online services team. Two of the founders will be retiring from the business after an appropriate handover. The third, who is the Integration Architect, will remain in post. For the year ended 31 August 2013, Indigo 4s financial statements show an adjusted profit before tax of £0.7m on revenue of £2.5m with high recurring revenues. The business will be immediately integrated into the Group's Secondary & Specialist Care division.
Over 150 NHS Trusts, Clinical Commissioning Groups ("CCGs") and private organisations already use Indigo 4's solutions. The company has three core products:
- Keystone (translation and messaging of clinical and administrative data including pathology, radiology and cytology),
- tQuest (electronic blood and other test requesting by GPs for pathology and radiology), and
- Review (clinical data repository and display for pathology, radiology and retinology).
Chris Spencer, CEO of EMIS Group, said:
"This acquisition supports our strategy of providing connected healthcare systems and follows the successful acquisitions of Ascribe and Digital Healthcare. It provides even more scope for the Group's comprehensive integration of primary and secondary care using a tried and tested platform.
"Working with Indigo 4's existing user base, already delivering an estimated 50% of blood test requests and results from and to GPs, we will be in an even stronger position to facilitate patient-centred connected care through integration so every clinician has all, but only, the information they need to give the best healthcare at the lowest possible cost."
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.