Torex, the leading UK-based health software specialist, has acquired the laboratory, radiology, oncology, mental health and primary care operations of InHealth Solutions for £3.5 million in shares.
The deal marks a further significant consolidation of the health IT supplier market serving the NHS and reinforces Torex’s position in both the primary and secondary care sectors. In total Torex has now spent over £100 million on acquisition deals over the past 18-months.
InHealth Solutions, which provides laboratory, radiology, oncology, mental health and primary care systems has a customer base focused on the UK and Ireland that includes over 100 NHS hospital trusts and 180 GP surgeries.
Significantly the deal should strengthen Torex’s position as one of the leading potential providers of applications and services to be delivered in partnership with Local Service Providers (LSPs) under the £2.3 billion NHS National IT Programme.
Torex say that the firm is well placed to work with the prospective LSPs in the new types of relationships that the NHS National IT Programme demands.
Chris Moore, chairman of Torex, commented: “The acquisition of these InHealth Solutions operations increases our market share in the buoyant UK Health market, further strengthening and enhancing our expertise in laboratory and radiology and offering a new capability in oncology-based solutions.”
He added: “By adding In-Health’s proven technology to our existing product portfolio, Torex continues to demonstrate its commitment to meet the challenges of the NHS’s national agenda.”
Torex says that the deal will further strengthen its leading market position – it claims a current 24.5% share of the UK’s main hospital systems market, and is a leading provider of GP systems.
The company adds that as a result of the deal it will be better placed to respond to key NHS wide initiatives, and able to to deliver the entire clinical software portfolio through local functions, including the National Service Framework for Cancer (NSF).
London stock market-listed Torex reported results in the 12-months to 31 December 2002, of a turnover of £161.8m and profits before tax of £24.7m.