Emis Group secures two acquisitions for £10m to strengthen business
HEALTHCARE SOFTWARE developer Emis Group has made two acquisitions worth more than £10m in total to bolster the business.
The Leeds-based group has bought the outstanding minority stake in its subsidiary Rx, which trades as Emis Health Community Pharmacy, for £8m, giving the group 100 per cent control of the business.
It has also spent an initial £2.5m on the acquisition of Dovetail Digital, a leading early stage UK technology business specialising in blockchain software for the healthcare market.
In the first acquisition, Emis bought a 21.1 per cent minority stake in Rx from Phoenix Medical Supplies, the leading pharmaceutical wholesaler, which has held its stake since before Emis acquired 78.9 per cent of Rx in 2010.
Phoenix, which owns more than 500 pharmacies in the UK, is a significant user of Rx’s systems and services, and is expected to remain an important customer of the group going forward.
Emis CEO Andy Thorburn said: “Rx has been an important contributor to Emis Group since 2010 and Phoenix a valued partner, co-investor and customer throughout that period.”
In the second deal, Emis said its acquisition of Dovetail is in line with the group’s strategy of identifying sustainable long-term market opportunities delivering connected healthcare systems.
Emis is acquiring an initial 90 per cent shareholding in Dovetail Lab on a cash and debt free basis for £2.5m, to be satisfied by £1.5m in cash payable immediately and £1.0m in Emis shares to be issued on successful product delivery milestones. Up to £2.5m of further consideration may be payable on the attainment of business targets in 2019, 2020 and 2021.