Ascribe buys Jade Health
- 17 May 2006
Acquisitive Bolton-based health IT group Ascribe has bought Jade Health from Jade Software Corporation, extending its product into mental health, and providing it with a presence in the Australasian market.
Jade Health provides IT solutions to 24 hospitals and health service organisations in New Zealand, Australia and the UK.
Under the terms of the agreement, Ascribe’s subsidiary Protechnic Exeter has acquired the Jade Health business for £3.38 million plus an additional sum in respect of the apportioned current assets and liabilities at the date of completion.
The deal includes a strategic commitment with Jade Software Corporation to ensure the long-term application development and maintenance of support contracts. The agreement should help ensure an effective transition of ownership and provide Ascribe with on-going access to skills and technology.
In 2005, Jade Health recorded a profit before tax of approximately £0.3m on sales of approximately £2.3m. The New Zealand-based company employs around 250 people throughout New Zealand, Australia, the United States and the UK.
In the UK Jade’s NHS customers include Harrow, in North London, and Bolton, Salford and Trafford mental healthcare trust. The low priority initially given to mental health by the NHS National Programme for IT had an adverse effect on orders.
Commenting on the deal, Stephen Critchlow, executive chairman of Ascribe plc, said: “Expanding Ascribe’s customer base internationally is a central part of the group’s strategy. Acquiring Jade Health significantly increases the critical mass of the group in the Australasian market where Ascribe already provides hospital pharmacy software solutions to four of the eight Australian jurisdictions and to 20% of the New Zealand public hospital market.”
The purchase of Jade health is the third acquisition in the past 18 months following its purchase of hospital patient administration system provider Barwick Systems in March, and its earlier purchases of A&E software specialist Footman Walker Ltd and primary care specialist Protechnic Exeter.
The Ascribe Group says that it now provides software solutions to emergency and minor injuries units, mental health and social care units, hospitals requiring patient administration systems and medical equipment management, hospital and retail pharmacies, and GP surgeries.
Links
Ascribe buys into the PAS market
