Dedalus buys DXC Technology’s health business for £413m

Fast-growing European health IT and diagnostics specialist Dedalus has announced it will buy DXC Technology’s health business for £413m ($525m).

The deal will propel Dedalus into a leading market share position in the NHS due to DXC Technology’s large legacy installation base that gives it a footprint in many NHS trusts, a mixture of Lorenzo and older iSoft software.

The large NHS installation base was acquired when DXC Technology, formerly CSC, acquired iSoft in 2011. Isoft had been one of the main suppliers awarded contracts under the Labour Government’s £12 billion effort to digitise the NHS in the early 2000s, but subsequently proved unable to deliver a promised Lorenzo next generation EPR software to schedule.

Based in Florence, Italy, Dedalus is a privately owned European healthcare and diagnostic software company covering hospital information systems (HIS).

The acquisition of DXC Technology’s healthcare business follows Dadelus entered exclusive talks  purchase of Agfa-Gevaert’s healthcare IT business for £843m (€975m), just two months ago.

The part that has been sold consists of the Healthcare Information Solutions (Electronic Health Record, the ORBIS platform) and the Integrated Care activities in Germany, Austria, Switzerland, France and Brazil as well as specific Imaging IT activities in these geographies.

The newly expanded Dedalus will become Europe’s largest healthcare IT firm, with a strong presence in markets including UK, Ireland, Spain, Holland, Scandinavia, Australia, New Zealand, Latin America, Asia, Middle East and North America.

Dedalus said following the DXC Technology acquisition it will employ over 5,500 people, with circa 2,000 solely in R&D, generating over £630 (€700m) in turnover.

“The addition of DXC’s healthcare software business will accelerate our growth initiatives that started three years ago and benefit the more than three million healthcare professionals who use our technology to treat more than 200 million patients every year,” said Giorgio Moretti, executive chairman of the Dedalus Group.

Ahead of the acquisition Andrea Fiumicelli, who had been head of DXC Technology’s healthcare division, was named the new CEO of the Dedalus Group.

The transaction was approved by DXC Technology’s board of directors and is expected to close by March 2021.

“The sale of our healthcare provider software business to Dedalus is consistent with our strategy of focusing on the Enterprise Technology Stack and rationalising our portfolio,” Mike Salvino, president and chief executive officer, DXC Technology, added.