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Announced

Northgate Public Services acquired Specialist & Care Segment of Emis Group for £14.9m.

Synopsis

EMIS Group, the UK leader in connected healthcare software and services, has completed the disposal of its non-core Specialist & Care segment to Northgate Public Services, the leading UK public sector software and services provider. The total cash consideration for the Disposal was £14.9m, made up of £14.0m paid on completion (inclusive of £5.0m of intercompany debtor balances settled in cash by EMIS Group on completion) and £0.9m 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 Ltd (England eye screening services), MIDRSS Ltd (Ireland eye screening services) and Digital Healthcare Ltd (eye screening software). 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 £8.0m. As previously indicated, the Specialist & Care segment was non-core to the Group's operations and future growth strategy as set out in November 2018. The proceeds of the disposal will be used for general corporate purposes, including investing in the main elements of EMIS Group's growth plans.

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