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Home » £1.24bn Takeover Of Yorkshire’s Emis Group By US Health Giant Given Provisional Clearance By CMA

£1.24bn Takeover Of Yorkshire’s Emis Group By US Health Giant Given Provisional Clearance By CMA

A £1.24bn deal between US United Health Group and Leeds-based Emis Group has been provisionally cleared by the Competition and Markets Authority (CMA).

It comes more than a year after terms were agreed for Minnesota-based United’s takeover of the provider of patient record IT services to the NHS. AIM listed Emis revealed the update to investors as its shares jumped more than 22%.

In March, the CMA said it had launched an in-depth investigation into the deal after an initial probe suggested it could risk worse outcomes for the NHS by removing competition. United’s subsidiary Optum UK provides prescription software used by GPs as well as data analytics and advisory services, and uses data held by Emis.

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The CMA now says its investigation confirmed Emis provides a particularly strong market position in the provision of patient records systems, but that the combination with Optum’s services did not pose a threat. A consultation on the findings has now been launched before a final decision is due in October.

Kirstin Baker, chair of the independent inquiry panel carrying out the investigation, said: “Digital technology and data analytics play an increasingly important role in supporting high quality healthcare in the NHS and so it’s important we investigate this deal thoroughly. We want to ensure the NHS continues to benefit from innovation and efficiencies brought about by technology services competing for its business. After carefully considering a broad range of evidence, we have provisionally found that this deal is not expected to harm competition or adversely affect patients.”

At the time of last year’s deal, Andy Thorburn, chief executive of £175m revenue Emis, said it would give the business the ability to better support the NHS and its clinicians. He said: “Emis’s long standing track record of delivering effective technology solutions and strong financial and operating performance combined with UnitedHealth Group’s resources and expertise will enable us to accelerate our development. We therefore consider that the combined group will be well positioned to serve its customers and partners in the UK’s healthcare system, whilst ensuring Emis remains a strong organisation supporting the NHS, thereby fulfilling Emis’s purpose of enabling better care through technology innovation.”

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