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EMIS expands diabetic eye screening business with new acquisition

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Healthcare services group EMIS (LON:EMIS) has unveiled the acquisition of Medical Imaging, a specialist in diabetic eye screening and ophthalmology imaging.

Medical Imaging is a contractor to the UK NHS and has a growing presence in Ireland’s national health service.

EMIS will pay £6.5mln cash upfront, and the acquisition cost could ultimately rise to £9.5mln.

Worcester-based Medical Imaging made a £1.3mln profit last year on £6.3mln of revenue, and EMIS expects the acquisition will be earnings enhancing in the first full year of ownership.

More than 90% of Medical Imaging’s revenue is recurring, EMIS said.

It added that the deal is complementary to the Digital Healthcare unit, acquired in 2013, and as such enhances services in an area closely aligned to its existing software systems.

EMIS chief executive Chris Spencer said: "I am delighted to welcome Medical Imaging to EMIS Group. It enhances our already strong position in diabetic eye screening, achieved through the 2013 acquisition of Digital Healthcare.

“This is a growing niche market.

“We expect the acquisition to be not only earnings enhancing in 2015 but also to help prevent blindness in the increasing number of people suffering from diabetes."

Quick facts: EMIS Group plc

Price: 1200 GBX

AIM:EMIS
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Market Cap: £759.74 m
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