Systems Solutions, a provider of software systems to the Irish pharmacy sector has announced it is to merge with Medicom, the leading provider of software to the Irish GP sector. The deal will create one of Ireland’s largest health ICT companies.
Under the deal Systems Solutions will acquire the majority stake in Medicom. The resulting new company will employ over 100 people and generating combined annual revenues of €10 million.
The value of the deal was not disclosed, nor was it made clear whether the new organisation will continue to trade under the Systems Solutions name.
Systems Solutions supplies software offerings to the pharmacy sector in Ireland and the UK, while Medicom provides software and ICT services to primary and secondary care professionals.
According to Systems Solutions the merger will help facilitate an integrated, joined-up primary healthcare sector in which professionals can better share information. It says the new combined company will invest over €750,000 each year in R&D.
The merged company will have a combined customer base of over 10,000 users of its healthcare software offerings. It will enjoy 65% and 12% market share of the Irish and UK pharmacy markets respectively, almost 60% of the Irish GP management market, 60% of the computerised private consultant market. The combined company will invest
Howard Beggs, new CEO of the merged organisation, said, “This merger brings many benefits to our customers, employees and stakeholders. Together, we envisage the creation of an integrated, joined-up primary healthcare service, which will electronically connect all primary healthcare providers together, improving quality and accessibility of healthcare services for both primary healthcare providers and patients alike.
David Raethorne, former technical director of Systems Solutions and newly appointed chief technical officer of the merged company: "We plan to develop and deliver next generation, cutting-edge technology that will make the Irish primary healthcare sector an international model of excellence".
Commenting on the deal Patricia Mc Lister, from Enterprise Ireland said that the government agency is working with Systems Solutions to achieve their ‘scaling strategy’. "This merger between Systems Solutions and Medicom is a significant step in the company’s plan to realise scale, which Enterprise Ireland defines as annual sales in excess of €20 million."