EMIS Group announces the acquisition of Dovetail Digital Limited (Dovetail Lab). An initial 90% shareholding in Dovetail Lab will be acquired on a cash and debt-free basis for £2.5m, with £1.5m in cash payable immediately and £1.0m in EMIS Group shares to be issued on successful product delivery milestones.
A further consideration of up to £2.5m may be payable on the attainment of certain business plan targets in 2019, 2020 and 2021.
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 will retain a 10% share of the original business subject to a call option in favour of EMIS Group exercisable between 2023 and 2025.
The group also acquired an outstanding minority stake in its subsidiary Rx Systems Limited for a consideration of £8.0m in cash (funded out of EMIS Group’s existing cash reserves), giving it 100% control of the business. The 21.1% minority stake was acquired from Phoenix Medical Supplies Limited, which has held its stake since before the Group acquired 78.9% of Rx in 2010. The transaction is expected to be immediately earnings enhancing for EMIS Group.
Andy Thorburn, EMIS’s CEO, commented: “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.”