McKesson announced Thursday morning in Europe that it will acquire British IT vendor System C Healthcare in a $140 million cash deal. The price represents a 51% premium to System C’s closing price last week before the company announced that it was in takeover discussions.
System C offers the Medway suite used in 40 NHS and private hospitals. It includes electronic medical records, patient management, departmental, business intelligence, and portal applications. Its Liquidlogic subsidiary sells software for social services agencies involved with children, domestic violence, housing, and mental health.
System C was in the news recently when a modified version of Medway was implemented as part of the Whole Hospital Information Systems project of the Ministry of Defence, supporting UK military and NATO personnel in the Camp Bastion hospital in Afghanistan.
The company lost money in the first half of the year after NHS changes affected its revenue.
System C had made a string of its own acquisitions, including IQ Systems Services (software for private treatment centers) in 2007; Care Records Unlimited (clinical systems) in 2008; Bluestar UK Group (healthcare RFID) in 2009; Conscia Enterprise Systems (web portals) in 2009; and Liquidlogic (social services software) in 2009.
With the NPfIT decision to decentralize its system selection process, NHS trusts are no longer obligated to buy systems from approved vendors iSoft and Cerner. McKesson, whose patient management and administrative systems are run in several UK hospitals, had previously announced plans to localize its Paragon system for use there.