EMIS Group plc Acquires 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.