EMIS Group offloads specialist and care segment for £14.9m

Healthcare software and services provider EMIS Group has completed the disposal of its non-core specialist and care segment to Northgate Public Services UK, it announced on Tuesday.

The AIM-traded company said 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.

It described specialist and care as “the leading provider” of diabetic eye screening software and other ophthalmology-related solutions in England and Ireland.

The disposal consisted of three businesses - Medical Imaging UK, which provides eye screening services in England; MIDRSS, which does the same in Ireland; and Digital Healthcare, which provides eye screening software.

In the financial year ended 31 December, the specialist and care unit reported £20.4m of revenue, an adjusted operating profit of £1.1m on a 5.5% margin, and closing net assets - excluding intercompany balances - of £8.0m.

“As previously indicated, the specialist and care segment was non-core to the group's operations and future growth strategy as set out in November 2018,” the EMIS Group board said in its statement.

“The proceeds of the disposal will be used for general corporate purposes, including investing in the main elements of EMIS Group's growth plans.”