Emis Group Plc (LON:EMISG) has announced two investments: the acquisition of the remaining 21.1% minority interest in Rx Systems and the acquisition of Dovetail Digital, a healthcare blockchain technology start-up. This gives EMIS full control of the community pharmacy business and a head start in the use of blockchain to provide secure access to patient data. These investments have consumed c £9.5m in cash. The net effect of these acquisitions is an increase in our normalised EPS forecasts of 0.6% in FY18 and 2.4% in FY19 and FY20.
Acquiring remaining 21.1% of Rx Systems
Having acquired 78.9% of Rx Systems in 2010, EMIS has just acquired the remaining 21.1% from Phoenix Medical Supplies for £8m in cash. This gives EMIS full control of the community pharmacy business. Phoenix owns the 500+-strong Rowlands Pharmacy chain and we expect the chain will continue to use EMIS software. Rx paid a £19m dividend just prior to this, and we have reflected the £4m outflow to minority shareholders.
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