EMIS Group has sold its Specialist & Care business to Northgate Public Services (UK) for an initial cash consideration of £14m and a contingent consideration of £0.9m. The £14m cash received includes £5m intercompany debt recently settled by EMIS, so will have a positive net cash impact of £9m. Specialist & Care provided eye screening services and software and was formed out of two businesses acquired in 2013/2014 for a total enterprise value of £12.5m. At the end of FY18, the business had net assets of £8.0m. EMIS had previously confirmed that this business was not core and the disposal will allow management to focus on the main elements of the growth plan unveiled at last year’s capital markets day.
Disposal of non-core eye-screening business: a research report by Edison
03 Apr 2019
The disposal of the Specialist & Care business for up to £14.9m removes a non-core, low-margin business from the Group and provides funds that can be directed towards the recently unveiled technology roadmap, reports Edison.