EMIS to be valued at £175m when it makes stock market debut

YORKSHIRE healthcare IT firm EMIS Group has confirmed that it will be valued at £175m when its shares debut on the stock market next week priced at 300p each.

The company, set up by two GPs who saw an opportunity to computerise patient records, will float on the Alternative Investment Market on Monday raising £50m. The share placing was two times oversubscribed.

The move, by EMIS Group, which is based in Rawdon, Leeds, will see the company raise £25m to pay off a £23m loan from its founder shareholders while existing shareholders selling some of their stakes will make £25m.

Following the flotation, the directors and senior management team of EMIS will own 52.9% of the company while the founder shareholders will hold an 18.5% stake.

Sean Riddell, chief executive of EMIS, said: “We are delighted with the positive response we have received from institutions to the placing and that investors share our enthusiasm for the growth potential of the group.  EMIS’ admission to AIM marks the beginning of a transformational new phase in the company’s development and provides us with a platform from which to build on our leading market position.”

Guy Jackson, Daniel O’Gorman and Abbie Robinson from law firm Cobbetts in Leeds advised the company while Baker Tilly were reporting accountants and Pinsent Masons advised Evolution Securities which is acting as nominated adviser and broker to EMIS.

EMIS – which stands for Egton Medical Information Systems – provides clinical software systems to GP practices in the UK and approximately 39 million patient records are held on its records.

EMIS’ core activities include software licensing and support, hardware support and maintenance services, hardware sales, third party software sales and training services. .

It employs 774 people at its offices in Leeds and last year had an operating profit of £15.8m – up from £5.8m in 2008 – on turnover of £57.7m.