EMIS Group plc Acquries Digital Healthcare Limited
The Board of EMIS Group is pleased to announce the acquisition of Digital Healthcare Limited, a leading provider of diabetic retinopathy screening and other ophthalmology-related solutions to community clinics, mobile units, specialist ophthalmology departments and practitioners. The acquisition is in line with EMIS' stated strategy of providing cross-organisational healthcare systems.
The acquisition provides EMIS Group with a strong position in a profitable niche market adjacent to EMIS Group's core presence in GP and Community Pharmacy systems. The purchase consideration, net of cash acquired, amounted to £ 3.1 million, payable in cash from the Group's existing resources. The acquisition is expected to be earnings enhancing in a first full year of ownership by EMIS.
Digital Healthcare is based in Cambridge and has 35 employees, all of whom are expected to remain with the business. For the year ended 30 September 2012, Digital Healthcare's audited financial statements show reported profit before tax of approximately £0.1 million on revenue of £3.4 million.
Digital Healthcare's principal area of business is providing solutions and services to manage and support systematic population-based retinal screening programmes. Active in many countries, but principally in England and Wales where it has a market share in excess of 75%, Digital Healthcare has deployed over 60 Diabetic Retinopathy screening programmes, managing in aggregate over 2 million registered patients and over 42 million retinal images.
Digital Healthcare was previously majority owned by a number of venture capital investors, with the balance held by or under option to management and other individuals, including Mike O'Leary (Non Executive Chairman of EMIS Group) who was also, until recently, Chairman of Digital Healthcare. Mike is therefore well acquainted with the capabilities of the business and its management team. Mike has informed the EMIS Group Board that he will be donating to charity any profit from his immaterial (less than 1%) shareholding in Digital Healthcare.
Chris Spencer, CEO of EMIS Group said:
"I am delighted to welcome Digital Healthcare to the EMIS Group. Diabetic retinopathy is the most common cause of blindness in the UK and it has been estimated that screening services could save more than 400 people per year from sight loss in England alone. As well as the obvious health benefits for those suffering from this long term condition, we see immediate opportunities for the Group in the provision of hosted services and a full end-to-end managed Diabetic Retinopathy screening service. In the medium term we also see further scope to integrate primary, community and acute healthcare and data for those at risk."