Sectra announces acquisition of Burnbank

Jun 7 2012

IT and medical technology company Sectra (http://www.sectra.com/) (STO:SECTB) is expanding through the acquisition of Burnbank Systems Limited, which markets IT services to the healthcare sector in the UK. The acquisition is part of Sectra's programme 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 delivery of services to the healthcare sector via hosted services is a supply model that will grow in significance," says Torbjörn Kronander, President of Sectra's Medical Systems business area. "Burnbank has built up a successful operation with exciting business development potential and the online services offered by Sectra to the healthcare sector will add further customer benefits."

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 transaction presents us with expanded opportunities to guarantee long-term stability," says Peter Young, Managing Director and owner of Burnbank. "Our business development will continue to be based on the premise that hospitals can avail themselves of our services regardless of which IT systems supplier for medical images and reports they use."

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.