Latest i2n News
Apr 2, 2019
Public sector software and services specialist Northgate Public Services (NPS) has acquired the eye screening businesses of EMIS Group for a total cash consideration of £14.9m. The deal follows the acquisition of APD Communications in January 2019 and i2N in August 2018. The acquisition comprises: Medical Imaging UK Ltd (England eye screening services), MIDRSS Ltd (Ireland eye screening services) and Digital Healthcare Ltd (eye screening software). These three businesses formed the Specialist & Care segment of EMIS Group, which in the financial year ended 31 December 2018 achieved revenue of £20.4m, up 13% on the previous year, and an adjusted operating profit of £1.1m (see EMIS grows despite legacy distractions ). The largest of these businesses is Medical Imaging UK, which had revenues of £14.6m in 2017. Digital Healthcare is a smaller business (2017: £2.2m) but its software holds a dominant position with an estimated 74% market share in English diabetic retinopathy screening in 2018. EMIS will use the proceeds of the disposal to invest in its plans to re-energise growth, including improving service performance and efficiency, growing its private sector enterprise business, and accelerating its technology roadmap. The deal significantly bolsters NPS’ presence in healthcare screening, which includes supporting Scotland’s Diabetic Screening Programme and the Newborn Hearing Screening Program in England and Northern Ireland. The acquisition will triple its healthcare revenue, will strengthen its Screening for Health software platform, and add a nationwide base of professional screening staff. In our recently published UK Public Sector Prospects report we said there was greater opportunity for NPS in healthcare and that it was an area it should be prioritising in its acquisition strategy. It has now done this, and it puts NPS in a strong position for future screening programmes in the UK and Ireland. We also expect NPS to look to build on their recent Indian Joint Registry and Paediatric screening deals by adding diabetic retinopathy screening capability.