Sysgroup Regulatory News (SYS)

3 Jul 2007 07:02

System C Healthcare plc03 July 2007 System C Healthcare PLC expands into private healthcare sector Acquisition of IQ Systems Services Ltd System C Healthcare PLC ("System C") (AIM:SYS), the provider of specialist ITproducts and services to the healthcare sector announces a significant strategicstep into the private healthcare market with the acquisition of IQ SystemsServices Ltd ("IQ") for a maximum consideration of £2.16m. IQ is a leading supplier of patient management and clinical software solutionsfor private treatment centres and hospitals. Its IQUtopia product is highlyregarded in the private healthcare marketplace and has been deployed at a numberof the most prestigious private sector treatment centres in the countryincluding Sussex Orthopaedic NHS Treatment Centre, Will Adams NHS TreatmentCentre (Gillingham), St Marys NHS Treatment Centre (Portsmouth), Midlands NHSTreatment Centre (Burton) and Eccleshill NHS Treatment Centre (Bradford) amongstothers. IQUtopia complements System C's MedWay Patient Administration andElectronic Patient Record (EPR) software, which is typically deployed intolarger NHS Acute Trusts. The acquisition of IQ accelerates System C's expansion into the privatehealthcare market as well as strengthening its product portfolio. IQ's customersinclude a number of major private healthcare providers including MercuryHealthcare (acquired by Care UK in April 2007), Centres of Clinical Excellence("CCE") and Nations Healthcare (acquired by CCE in June 2007). The consideration for the acquisition is £0.8m in cash on completion, with up toa further £1.36m payable in a mixture of cash and shares over the next 2 yearsdependent on the achievement of performance targets. The cash element of theconsideration is to be funded from the Group's existing resources. In the yearto 31 December 2006, IQ reported turnover of £0.9m, normalised PBT of £0.15mand, as at 31 December 2006, had Gross assets of £0.25m. The board expects theacquisition to be earnings enhancing from day one. (1) System C's Chief Executive, Ian Denley, commented: "We are delighted that IQ has chosen to become a fully integrated part of theSystem C business. We believe that the role of the private sector in most majorhealth economies will be become increasingly important over the medium term, andwith its significant customers and an established and well thought of product,the acquisition of IQ enables System C to expand directly into the privatehealthcare provider market. We will work closely with IQ to enhance IQUtopia, strengthen the professionalservices available to IQ customers, and further expand the strategicrelationship with their clients." John Wyatt Barton, Co-director of IQ, highlighted the product and servicessynergies between the companies: "Working with System C will open up many new opportunities for us. Theirprofessional services capability and their scale are just what our clients havebeen asking for and they have key products which complement IQUtopia. There is a tremendous cultural fit between the two companies and we look forwardto working in close collaboration to meet the exciting new opportunities ahead." ENDS For further information, please contact: System C Healthcare plc Dr Ian Denley, Chief Executive Markus Bolton, Founding Director Tel: 01622 691616 Maitland Emma Burdett/Richard Farnsworth Tel: 020 7379 5151 Collins Stewart Europe Ltd Chris Wells/Mark Connelly Tel: 020 7523 8350 Notes to editors: System C Healthcare plc (www.systemc.com), established in 1983, specialises inthe provision of information systems and solutions to the healthcare sector. Itsstaff have an average of 15 years' healthcare experience and can provide allaspects of systems design, development and deployment services. System C isfounded upon the belief that IT solutions, when effectively implemented, cansignificantly contribute towards improving patient care. System C is a specialist developer and supplier of Patient Administration andElectronic Patient Record Systems to the health service. The company's MedWayproduct is successfully installed at a number of NHS hospitals includingUniversity Hospitals Aintree, Swindon and Marlborough NHS Trust, TamesideHospitals NHS Trust and the Christie, one of the UK's leading cancer hospitals.System C has recently won a £7.5m contract to supply MedWay to the Isle of ManGovernment. System C has helped to install healthcare systems at over 130 NHS Trusts andoffers a wide range of services to Local Service Providers, the NHS andthird-party suppliers. These include programme/project/change management,design, build and test, implementation, training, data migration, interfacingand helpdesk/support services. Within the National Programme for IT (NPfIT),System C people have been involved in the majority of secondary care go-lives todate as well as many GP, community, Single Assessment Programme and child healthdeployments. -------------------------- (1) This statement should not be interpreted as a profit forecast and does notmean that the future earnings per share of System C, following completion of theacquisition of IQ, would necessarily match or exceed the historical earnings pershare of System C. This information is provided by RNS The company news service from the London Stock Exchange