EMIS disposes of specialist eye division for £14.9m
Leeds-headquartered healthtech and software business EMIS Group has disposed of its Specialist & Care segment – which includes three specialist eye firms – for £14.9m.
The listed group has sold the division to Northgate Public Services (UK), the leading UK public sector software and services provider.
The total cash consideration for the disposal was £14.9m, made up of £14m paid on completion, inclusive of £5m of intercompany debtor balances settled in cash by EMIS Group on completion, and £900,000 of contingent consideration.
Specialist & Care is the leading provider of diabetic eye screening software and other ophthalmology-related solutions in England and Ireland. The disposal consists of three businesses: Medical Imaging UK , MIDRSS and Digital Healthcare.
In the financial year ending 31 December 2018, Specialist & Care reported £20.4m of revenue, an adjusted operating profit of £1.1m (5.5% margin) and closing net assets (excluding intercompany balances) of £8m.
The proceeds of the disposal will be used for general corporate purposes, including investing in the main elements of EMIS Group’s growth plans.
Providing lead advisory services, the team from Deloitte Corporate Finance included Dan Renton, Cameron Philips and Peter Reynolds. Karen Landells advised on tax matters.
Dan Renton, Corporate Finance Partner at Deloitte in Yorkshire and the North East, said: “We are pleased to have advised EMIS on the sale of these three businesses. Whilst now non-core to EMIS, Specialist and Care continues to offer critical services to diabetic patients across the UK and Ireland. The sale to Northgate Public Services provides the opportunity for the businesses to further flourish under a wider care programme with them.
“The deal was completed expeditiously and it was a pleasure to work with EMIS Group and the management teams to achieve this sale outcome.”
Matt Henderson, lead Healthcare Partner for Deloitte in Yorkshire and the North East, added: “The deal further evidences our M&A experience with healthcare and healthtech businesses. They are sectors with specific and increasing significance within the region and we are proud to be supporting growth and achieving success in this important sector.”
