6 November 2019
Induction Healthcare Group PLC
("Induction", the "Company" or the "Group")
Acquisition of Horizon Strategic Partners Limited
Extends Company's growing user base and global reach
Induction Healthcare Group PLC, a leading healthcare technology company focused on helping to streamline the delivery of care, announces that it has today acquired Horizon Strategic Partners Limited ("Horizon").
Horizon owns MicroGuide - a revenue-generating app providing medical organisations with functionality to create, edit, and publish their own local medical guidelines ("Guidelines") in a secure and locally administrated environment. These guidelines can be accessed by clinicians, at the point of care, either on a mobile device or an intranet.
Since its launch in 2013, MicroGuide has grown to be the 'go-to' source for guidance on antimicrobial use and the most used guidelines app in the NHS. Today, MicroGuide is paid for and used in approximately half of all NHS Trusts and three quarters of Acute Trusts.
For the year ended 31 December 2018, Horizon reported revenue of £220,640 and a net loss before tax of £560,512, with a net liability position of £554,674 as at 31 December 2018. Since then, the business has entirely focussed on its MicroGuide app and scaled back other operations and as a result has moved to a break even position in the quarter ended 30 September 2019.
Under the terms of the acquisition, the Group will purchase Horizon for a total consideration of up to £2.5 million, comprising an initial payment of £1 million and deferred contingent consideration of up to £1.5 million which can be settled for cash and Induction shares determined by performance deliverables before 30 September 2020.
Ibs Mahmood, CEO of Induction, said:
"MicroGuide brings to the Group a further substantial NHS user base. For healthcare professionals in many NHS Trusts, the Induction Switch app and MicroGuide already rank respectively as either the number one or number two most used healthcare apps. At Induction we are fanatical about helping healthcare professionals deliver care. So, combining the two apps will not only improve existing functionality but also provide an even stronger platform for rolling out new functionality to ease the daily-grind for healthcare professionals worldwide".
Mike Northall, CEO of Horizon, said:
"Both companies share a vision of providing mobile solutions to the healthcare community. The combined platform will broaden access to medical information giving clinicians the latest information where and when they need it, empowering them to deliver more effective and improved patient outcomes.
The transaction is also good news for our clients as being part of a larger Group will enable us to expand our MicroGuide services portfolio and provide the other products and services being developed by Induction."
Induction Healthcare Group PLC
Ibs Mahmood, Chief Executive Officer
via FTI Consulting
Numis Securities (Nominated Adviser and Broker)
James Black / Freddie Barnfield / Huw Jeremy / Matthew Jones
+44 (0) 207 260 1000
Brett Pollard / Jamie Ricketts / Elena Kalinskaya / Sam Purewal / Mary Whittow
+44 (0) 203 727 1000
Induction Healthcare Group PLC is a leading healthcare technology company focused on helping healthcare professionals to streamline the delivery of care. The Group's technology enables healthcare professionals to save time and deliver care more effectively and to identify ways to allocate resources more efficiently.
The Group initially targeted improving the way healthcare professionals communicated with each other through its Induction Switch app that provides a telephone directory (allowing healthcare professionals to easily find extension telephone numbers), messaging and an administration portal (to share and view hospital guidelines), all in a secure and regulatory compliant setting.
As at 19 September 2019, the Induction Switch app had registered users surpassing 100,000, most of which are UK hospital doctors.
MicroGuide is the world's number one medical guidelines application. It is used in 130 medical organisations and has over 140,000 users in 173 countries around the world. With 750 content editors, MicroGuide's 50 different types of locally administered guidance range from antimicrobial to wound formulary and emergency medicines to oncology and pain management. In May 2015 MicroGuide was awarded the CE Mark, a certification mark that indicates conformity with health, safety, and environmental protection standards for products sold within the European Economic Area, and officially became a Medical Device. It is now consistently in the top 10 of professional medical Apps downloaded.