HELIX HEALTH, the largest indigenous supplier of technology to the health sector, has merged with Health Ireland Partners, its largest competitor.
The deal will mean that almost 2,000 of the State’s 2,500 general practitioners will use Helix software in their practices, while about 80 per cent of the population will have their prescriptions managed using its technology.
Howard Beggs, managing director of Helix, said Health Ireland Partners’ products and brands would be maintained. “Doctors make a decision on what product to use on look and feel, functionality etc,” said Mr Beggs. “It’s not a case of one size fits all.”
Health Ireland Partners is 65 per cent owned by a consortium of doctors and Mr Beggs said this was one of the attractions of the deal.
“They have their own very active user groups around the country,” he explained. “The doctors have a vested interest in driving the product forward.”
The deal is primarily an all-paper transaction, with a small cash consideration that Mr Beggs declined to comment on.
With such a strong position in the Irish market, Helix Health is now working with Enterprise Ireland to expand sales overseas.
The company has already established a beachhead in Britain, which accounted for about 10 per cent of revenues last year.
“We have had quite a lot of success in the UK by latching onto niche markets,” said Mr Beggs.
The firm’s software is in use by three of the largest online pharmacies in Britain and has now formed a joint venture with EMIS, itself a big player in providing technology to GPs, to tackle the retail pharmacy sector.
Mr Beggs said the firm planned to expand into the US and Middle Eastern markets.
Although healthcare technology, in common with other sectors, is feeling the impact of the recession, Mr Beggs said there was still business to be won. “Where IT delivers a strong business case – whether through enhancing patient care or safety – you will still get a hearing.”
The newly expanded Helix Health will employ just over 100 staff and is valued at €35 million. The figure is based on a valuation carried out by BDO Simpson Xavier last year when Helix raised investment from a fund managed by Davy Stockbrokers.
Helix Health turnover in 2008 was €10.5 million and the projected turnover for 2009 is €12.4 million. It was born out of the 2007 merger between Systems Solutions, a provider of pharmacy management software, and Medicom Medical Computer Solutions, a provider of general practice systems.
