EMIS IT parent looking to raise £50m with AIM flotation
EMIS (originally Egton Medical Information Services – but also the parent of legal IT vendor EMIS IT) is looking to raise £50million by a listing on the AIM market later this month, with a target market capitalisation of £200million*.
The listing will enable co-founders Peter Sowerby (82) and Tony Jones (62) to sell part of their stakes ahead of capital gains tax changes in April. EMIS also intends to pay off a £23million shareholder loan. However chief executive Sean Riddell said the listing would also give the group flexibility to make acquisitions as it rolls out its new product EMIS Web into the primary care market.
According to the Financial Times, analysts are warning that EMIS is targeting a premium valuation of 18x times 2010 earnings. The company made £15.8m operating profit on turnover of £58m last year. Evolution Securities is acting as nominated adviser and broker to EMIS.
Comment: Along with potentially providing more funding for EMIS IT in the UK legal market, this story also brings in one of this blog's favourite characters Vin Murria. As reported last month, Vin Murria's new commercial vehicle ACS is doing to the UK primary care market what CSG (now IRIS) did for the legal market. One of the few other big players in primary care – and in fact the one-time market leader – is EMIS. And EMIS is a company that 18 months ago received a takeover proposal from ACS. It therefore looks as if another motivation for EMIS is that it needs to expand its position in the market, if it it is not to risk the Big Bad Vin-wolf blowing its house down. * Our thanks to David Riggall of Rose & Bridge Associates for spotting this story for us.