Induction Healthcare (AIM: INHC ) has conditionally agreed to acquire digital healthcare platform Zesty in what CEO, Hugo Stephenson, has labelled “a transformational opportunity for healthcare.”
The deal is for a consideration of £500,000 plus the issue of 12.4m new ordinary shares equivalent to 41.9% of the existing company and around 29.5% of the enlarged share capital.
The enlarged group will be one of the first technology platforms to connect patients, clinicians and healthcare information across many hospital sites and EPR platforms, the Directors said.
The deal, which is subject to shareholder approval, will see Zesty’s founder James Balmain become joint-CEO of the enlarged business alongside Induction’s Dr Hugo Stephenson.
Zesty’s platform allows patients to manage their hospital outpatient appointments, read correspondence, attend a video based consultation whilst storing their clinical records.
For the year ended 31st December 2018, Zesty reported revenue of £1 million and a net loss before tax of £500,000.
“Zesty has demonstrated that it can improve patient experience while saving hospitals time and money through its market leading patient portal and outpatient bookings engine,” said Stephenson.
Shares in Induction Healthcare were trading flat at 98.5p on Tuesday morning.
Induction has two platforms, Induction and MicroGuide, which support healthcare professionals in multiple markets, including UK, Ireland, Australia and South Africa.
Induction’s app, which is used by the majority of hospital doctors within the NHS, helps over 140,000 users, it says, whilst its MicroGuide platform is used by many trusts within the NHS.
"I see the frustration that clinical teams and patients feel every day. Basic things, like updating a patient record or booking an appointment - are just not easy enough,” said James Balmain, CEO of Zesty, “So an app for doctors, connected to an app for patients makes total sense.”
The Directors said they expect the acquisition to provide ‘many synergistic benefits’ including a combined sales channel as well as improved software engineering resources.
“Connecting the most used app by NHS doctors (Induction) and the most used app by NHS trusts (MicroGuide) with patients and their health records, has the potential to deliver the right resources to the right places at the right time,” said Stephenson.
“The COVID-19 pandemic has focused minds within healthcare on the benefits of using digital technology in all sorts of ways - I think we can and should be doing more,” added Balmain.
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