Emis makes acquisition

Leeds-based Emis said that the acquisition provides the group with “a strong position in a profitable niche market adjacent to Emis Group’s core presence in GP and community pharmacy systems”.

Digital Healthcare, which is based in Cambridge, provides 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’ strategy of providing cross-organisational healthcare systems, it said.

Digital Healthcare has 35 employees, all of whom are expected to remain with the business. For the year ended September 30, 2012, Digital Healthcare’s audited financial statements show reported profit before tax of around £100,000 on revenue of £3.4m.

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, who was also, until recently, chairman of Digital Healthcare.

Chris Spencer, CEO of Emis 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.”

Emis said that the purchase consideration, net of cash acquired, amounted to £3.1m, payable in cash from the group’s existing resources.