Acquisition
System C Healthcare plc
28 January 2008
System C Healthcare PLC acquires Care Records Limited
System C Healthcare PLC ("System C" or "the Company"), the provider of
specialist IT products and services to the healthcare sector, today announces
the acquisition of clinical systems developer Care Records Limited ("Care
Records") from Huntleigh Healthcare Ltd ("Huntleigh"), one of the UK's largest
medical equipment manufacturers.
The consideration for the acquisition is £0.85m in cash on completion, with up
to a further £2.6m payable in cash over the next 3 financial years dependent on
the achievement of demanding performance targets. The consideration is to be
funded from System C's existing resources. In the year to 31 December 2007, Care
Records reported profits of £0.2m and reported small net liabilities of £0.03m.
The board anticipates the acquisition to be earnings enhancing in the financial
year to May 2009, reflecting initial investment in sales and marketing
activities(1).
Care Records is a developer of leading-edge technology for the design and
development of clinical IT systems. It has used this core technology to produce
the Eclipse maternity system and a diabetes management system, both of which
have been installed in UK hospitals. Further applications for the acute and
community markets are under development and will be available soon.
The Eclipse products are developed using the Microsoft.net framework, the same
development environment as MedWay Sigma, System C's next-generation Patient
Management and Electronic Patient Record system. They have also been fully
integrated with MedWay as part of the Company's recent deployment at the Isle of
Man.
During 2007, Care Records has sold and successfully implemented its maternity
software at four hospitals: Bradford Teaching Hospitals Foundation Trust; Surrey
and Sussex Healthcare NHS Trusts; Royal Shrewsbury Hospitals Foundation Trust;
and the Nobles Hospital on the Isle of Man. The diabetes management system has
been installed at the University Hospitals of Leicester NHS Trust.
System C will maintain and extend Care Records' relationship with Huntleigh
Healthcare, and is setting up joint distribution and collaboration agreements
with Huntleigh for both the UK and overseas markets.
System C's chief executive, Ian Denley, commented:
"Care Records has developed exciting next-generation systems which integrate
seamlessly with our latest Medway development. This acquisition gives Medway
users a far broader range of clinical functionality and allows us to fast-track
our development programme. We see many new opportunities both within the UK and
overseas as a result of this acquisition."
He added: "Another benefit of the acquisition is that we will be building on
Care Records' close relationship with Huntleigh, a leading medical equipment
supplier, and we plan to work closely with them and their clients over the
coming years to provide seamless integration between our respective clinical
systems and devices."
Philip Godfrey, founder of Care Records, highlighted the synergies between the
companies:
"Working with System C will open up many new opportunities for us. Their
excellent track record in the development of healthcare IT solutions, combined
with their proven deployment capability, experience and size, are a perfect
match for us".
ENDS
For further information please contact
System C Healthcare plc
Dr Ian Denley, Chief Executive
Andrew Coll, Finance Director Tel: 01622 691 616
Maitland
Emma Burdett Tel: 020 7379 5151
Richard Farnsworth
Collins Stewart Europe Limited
Mark Connelly/Stewart Wallace Tel: 020 7523 8350
Notes to Editors
System C Healthcare plc (www.systemc.com), established in 1983, specialises in
the provision of information systems and solutions to the healthcare sector. Its
employees have an average of 15 years' healthcare experience and can provide all
aspects of systems design, development and deployment services. System C is
founded upon the belief that IT solutions, when effectively implemented, can
significantly contribute towards improving patient care.
System C is a specialist developer and supplier of Patient Administration and
Electronic Patient Record Systems to the health service. The Group's MedWay
product is successfully installed at a number of NHS hospitals including Noble's
Hospital Isle of Man, University Hospitals Aintree, Swindon and Marlborough NHS
Trust, Tameside Hospitals NHS Trust and the Christie, one of the UK's leading
cancer hospitals.
System C has helped to install healthcare systems at over 150 NHS Trusts and
offers a wide range of services to the NHS, other healthcare providers and
third-party suppliers. Services include programme/project/change management,
design, build and test, implementation, training, data migration, interfacing
and helpdesk/support services. Within the National Programme for IT (NPfIT),
System C people have been involved in 75% of secondary care go-lives to date as
well as many GP, community, Single Assessment Programme and child health
deployments
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(1) This statement should not be interpreted as a profit forecast and does not
mean that the future earnings per share of System C, following completion of the
acquisition of Care Records, would necessarily match or exceed the historical
earnings per share of System C.
This information is provided by RNS
The company news service from the London Stock Exchange
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