EMIS swoops for Ascribe in £57.5m deal

HEALTHCARE software provider EMIS Group has bought Ascribe in a £57.5m cash and shares deal.

EMIS, based in Leeds, said the deal represented a milestone for its business that would deliver “significant growth prospects”.

Bolton-based Ascribe, which sells pharmacy, administration and accident and emergency systems to the NHS and overseas, has been sold by ECI Partners which exited Crewe-based Bargain Booze in a £64m flotation in July.

It took Ascribe private from AIM in a £33m transaction four years ago. This deal values Ascribe’s share capital at £12.5m but EMIS is also paying £40.4m to acquire outstanding loan notes and preference shares. A further £4.6m is being paid to cover external bank debt. In the year ended June 30 Ascribe reported revenue of £24m and an operating profit of £4.3m.

EMIS is covering the cost from a £32m debt facility with Yorkshire Bank and a £27m fundraising with Numis Securities.

EMIS’ chief executive Chris Spencer said: “The acquisition of Ascribe represents a significant milestone in our stated strategy of providing clinically led, integrated, cross-organisational healthcare systems, and represents a rare opportunity to acquire multiple significant positions in an adjacent but not overlapping market.

“We believe that there are significant growth prospects for the combined business which will be uniquely placed to address market challenges, allowing us to directly target the acute, specialist care, pharmacy, children and community care and the mental health markets, thereby facilitating the UK’s strategy of integrated healthcare.”

David Ewing, managing partner at ECI, said: “Today’s sale represents another successful transaction for ECI, and marks our third exit in as many months which included the sale of CliniSys, the European market leading provider of software solutions to clinical laboratories. It further highlights our strong track record in creating and growing international market leading businesses in the TMT and healthcare sectors”.

 Ascribe was advised by Altium in Manchester.