System C Healthcare acquires Bluestar UK Group

System C Healthcare, a provider of IT products and services to the healthcare sector, has acquired the Bluestar UK Group, a developer of healthcare IT solutions, for a maximum consideration of up to GBP3m.

The consideration for the acquisition is GBP0.4m in cash on completion, with up to a further maximum of GBP2.6m payable in cash over three years from completion. Payment of the maximum deferred consideration is subject to Bluestar achieving total aggregate profit before taxation of GBP2.12m over the three-year period, and is capped in each year based on annual targets. The consideration is to be funded from System C’s existing resources.

System C intends to use its scale and market presence to bring Bluestar technologies to a wider audience, and work is already underway to provide its IGFlow Information Governance product as a data center hosted service to multiple NHS Trusts.

Bluestar’s products complement System C’s Medway Sigma range of healthcare computer systems, and their products will be integrated with, and sold alongside, Medway Sigma, said System C.

Combined with System C’s design, build, test, deployment and healthcare improvement services, the expanded group is now in a position to offer a complete range of consulting services to the NHS, private and independent sectors, added System C.

Tony Corkett, founder and CEO of Bluestar, said: System C’s excellent track record in the development of healthcare IT solutions, combined with their proven deployment capability and experience, are a perfect match for us. Their reputation, their client base and their size will open up many new opportunities for us.