IT and medical technology company Sectra has acquired Burnbank Systems Limited, which markets IT services to the health care sector in the UK. The acquisition is part of Sectra’s program to expand its medical systems operations in the UK market.
Burnbank has built up a network for the transfer of medical images and reports between care providers in the UK. More than 290 hospitals, which is essentially all of the National Health Service, use Burnbank’s Image Exchange Portal service.
The acquisition comprises the three companies Burnbank Systems Limited, Burnbank Healthsystems Limited, and Burnbank Data-connect Limited, with offices in Ipswich, Suffolk. The company has a total of 25 employees and posted sales of GBP 2.4 million and an operating margin of 25% for the 2011 fiscal year. Burnbank will continue to operate under its existing brand as a separate business unit in Sectra’s Medical Systems business area, providing solutions by integrating different vendors’ products to deliver best of breed services.
The cash purchase consideration amounts to GBP 5 million. The transaction encompasses an additional purchase consideration of up to GBP 3 million. Financing of the acquisition will be covered by existing funds. Sectra assumed control of the operation on June 6 and the business will be consolidated in the Sectra Group as of June 2012.
