1 Nov 2018 07:00
01 November 2018
EMIS Group plc
("EMIS Group" or "the Group")
Acquisition of Dovetail Digital Limited
EMIS Group, the UK leader in connected healthcare software and services, is pleased to announce the acquisition of Dovetail Digital Limited ("Dovetail Lab"), a leading early stage UK technology business specialising in blockchain software for the healthcare market, for an initial consideration of £2.5m. The acquisition is in line with the Group's strategy of identifying sustainable long-term market opportunities delivering connected healthcare systems.
Founded in July 2017, Dovetail Lab creates software that gives patients full control of their healthcare records, delivering secure exchange of data between different health services and new digital technologies involved in patient care. Its patent-pending blockchain-based technology delivers accountability, security and trust in the transmission of healthcare data, whilst mitigating risk and maximising health outcomes for patients. Blockchain is a key element of our updated technology Roadmap which we will discuss further at our Capital Markets Day on 29 November 2018.
Dovetail Lab expects to generate revenue of approximately £0.9m and a small operating loss during its first full year of operation in 2018. The team based in London will join EMIS Group as part of the acquisition, including Dovetail Lab's CEO and co-founder Alexandra Eavis. Existing Dovetail Lab shareholders (comprising management and early stage investors) will retain a 10% share of the original business subject to a call option in favour of EMIS Group exercisable between 2023 and 2025.
EMIS Group is acquiring an initial 90% shareholding in Dovetail Lab on a cash and debt free basis for £2.5m, to be satisfied by £1.5m in cash payable immediately and £1.0m in EMIS Group shares to be issued on successful product delivery milestones. Up to £2.5m of further consideration may be payable on the attainment of certain business plan targets in 2019, 2020 and 2021.
Andy Thorburn, CEO of EMIS Group, said:
"This is a very exciting acquisition for the Group, with Dovetail Lab widely regarded as one of the leading healthcare blockchain businesses in the UK, that is driving innovation across the sector.
"The business has already launched a successful pilot of its software within the NHS, giving patients access, visibility and control over their health data using explicit and informed consent to drive data sharing across all health and care settings. The potential applications for blockchain technology in the UK healthcare sector are significant and we look forward to working with the new team to explore these."
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For further information, contact:
EMIS Group plc Tel: 0113 380 3000
Andy Thorburn, CEO
Peter Southby, CFO
www.emisgroupplc.com
Numis Securities Limited (Nominated Adviser & Broker) Tel: 020 7260 1000
Oliver Hardy/Simon Willis/James Black
MHP Communications Tel: 020 3128 8788
Reg Hoare/Giles Robinson/Patrick Hanrahan/Florence Mayo
emis@mhpc.com
Notes to Editors
EMIS Group is the UK leader in connected healthcare software and services. Its solutions are widely used across every major UK healthcare setting from primary, community & acute care, to high street pharmacies and specialist care services. EMIS Group helps healthcare professionals in over 10,000 organisations share vital information, facilitating better, more efficient healthcare and supporting longer and healthier lives.
EMIS Group serves the following healthcare markets under the EMIS Health brand:
• Primary, Community & Acute Care, as the UK leader in clinical management systems for healthcare providers and commissioners. EMIS Health products, including the flagship EMIS Web, hold over 40 million patient records and are used by more than 100,000 professionals in nearly 6,000 healthcare organisations.
• Community Pharmacy, with the UK's single most used integrated community pharmacy and retail system.
• Specialist Care, as England's leading provider of diabetic eye screening software and other ophthalmology-related solutions.
These markets are also supported by other EMIS Group businesses:
• under the Patient brand, the UK's leading independent provider of patient-centric medical and well-being information and related transactional services.
• under the Egton brand, providing specialist ICT infrastructure, hardware and engineering services, and non-clinical software into health and social care.
• under the EMIS Care brand, providing healthcare screening programmes such as diabetic eye screening.