OnMedica Group plc, the European e-health company has acquired MediDesk Limited, a leading provider of web-based clinical software and information services to healthcare
The acquisition provides an exit for MediDesk’s original shareholders, Advent VCT plc, 3i Group plc, funds managed by Northern Venture Managers, Reed Business Information Ltd and S.R.One Limited, a venture capital subsidiary of GlaxoSmithKline plc. Majority shareholders were 3i, Advent and Reed Elsevier. As a result of the acquisition, each of the shareholders will become a minority shareholder in OnMedica.
Under the terms of the acquisition, OnMedica is acquiring the entire share capital of MediDesk for a nominal consideration of GBP15.4 million. This is satisfied by the issue of a total of 736,661 new ordinary shares or options over ordinary shares in OnMedica to the existing shareholders and employees of MediDesk, representing approximately 27 per cent of the enlarged OnMedica share capital. The acquisition values the enlarged group at approximately GBP56 million.
Martin Leuw, chief executive of MediDesk, Nic Holladay, chief operating officer, and Robin Phillips, finance director, will all join OnMedica’s senior management team and play important roles in the integration of MediDesk’s business and operations into OnMedica.
MediDesk was formed just over two years ago when it merged with software consultancy company, Trident Health. There were two main rounds of funding. The initial seed and early stage funding from Advent and S.R.One Limited took place about three years ago. The second round of approximately GBP6.25 million was committed between June and December 1999.
In April last year MediDesk was set to float on AIM, but postponed its IPO due to poor market conditions. Martin Leuw, chief executive of MediDesk, said: “We went through the whole process preparing to float on AIM and we were ready in April, but we decided not to pursue it, as the market plummeted just as we were about to float. We decided to look for alternative opportunities and took the acquisition path.”
He added that the team was absolutely delighted when they identified OnMedica as a buyer a few months back. Leuw believes that market consolidation is essential and that over the next few years there will be fewer, but larger players in this field.
OnMedica Group was established early in 2000 with the aim of building a pan-European operating business developing and applying innovative technologies in the field of e-health.
Since raising A30 million in October through a strategic and equity partnership with Internet Capital Group, the company has acquired 100 per cent of ukpractice.net and a strategic 40 per cent stake in Pharmacy 2U Ltd, the UK’s first online pharmacy.
Jeremy Stone, chief operating officer of OnMedica, says the company is pleased with the acquisition. “It has been very important to bring the two businesses together to build a stronger strategy for the company.”
OnMedica has a carefully designed strategy with several more acquisitions in the pipeline planned for the coming months. Brad Wilson, chief executive of on OnMedica, said: “Our goal is to create an e-health operating company capable of generating durable, high quality revenues. Through the two acquisitions of UKPractice.net and MediDesk, we have taken significant steps towards achieving this objective.”