McKesson UK put up for sale

McKesson has announced its intention to sell McKesson UK, including subsidiaries System C and Liquidlogic.

The San Francisco-based company will divest its International Operations Group business. IOG currently has three divisions: McKesson UK, McKesson France, and McKesson Netherlands.

The company said the businesses accounted for only a small percentage of revenues and will enable it to better focus on core business.

McKesson has been active in the UK for 23 years. Almost all NHS trusts use the McKesson Electronic Staff Record HR system, and it remains the third biggest supplier of PAS systems to the NHS.

The company’s legacy PAS base dates from before NPfIT, for which it did not become a strategic supplier.

It effectively re-entered the market by buying System C for £87m in 2011. At the time, the deal was billed as one that would marry McKesson’s client base and financial strength with System C’s modern electronic patient record systems.

System C also brought with it Liquidlogic, which is the major supplier of child health and social care systems to councils.

However, the company says the planned sale of IOG forms part of wider changes to McKesson’s portfolio. 

McKesson has made the decision to divest several businesses, two of which reside in McKesson Technology Solutions – IOG and McKesson Automation.

In a statement the company said: “McKesson believes that IOG will be better able to execute on its own growth strategy, increase its competitiveness, and deliver for its customers under new ownership.”

The statement added: “IOG’s products have been specifically developed, sold and maintained in the UK and Europe for their respective markets.

"McKesson’s current priority, therefore, is to find the right partner and a new home for IOG’s customers and employees that reflect this particular strength.”

Lord Patrick Carter, chair of IOG, said in a statement: “IOG is a sound and strong business, generating significant cash flow and enjoying an excellent reputation.”

He added: "As always, we will continue to share information with our customers as we take forward our plans."

The company also has a significant digital imaging business, but this sits within another division, and is not affected by the sale.