The Health division of Wolters Kluwer, a global provider of information and point of care solutions for the healthcare industry, has signed an agreement to acquire Emmi Solutions (Emmi), the U.S. providers of patient engagement solutions, for $170 million in cash.
Founded in 2002, Emmi is a provider of comprehensive and interactive patient engagement solutions supporting healthcare providers and insurance carriers in delivering effective healthcare. Patient engagement solutions encourage patients to more actively participate in their healthcare, thereby improving outcomes and potentially reducing healthcare costs. Emmi's offerings are a natural extension to the existing Clinical Solutions portfolio, in particular to UpToDate in decision support and Lexicomp and Medi-Span in drug information.
Emmi offers an enterprise-wide, integrated, and multi-media patient engagement platform with high quality, peer-reviewed content and personalised communications that span the spectrum of care from prevention, to treatment, to patient follow-up. The company's solutions are highly rated for ease of integration with electronic medical records (EMR) systems, technical capabilities, and overall user experience.
The U.S. market for patient engagement solutions is expected to grow at a double-digit rate in coming years, driven by the ongoing shift from a 'pay for service' to a 'pay for outcome' reimbursement model. Emmi's revenues are expected to reach approximately $29 million in 2016, driven by increasing penetration and product innovation. Over 90 percent of revenues are subscription-based and over 95 percent is derived from the US market. The acquisition is expected to deliver a return on invested capital above Wolters Kluwer's after tax cost of capital (8 perfect) in 3 to 5 years and is expected to be enhancing to adjusted earnings in the first full year. Completion of the transaction is subject to Hart-Scott-Rodino regulatory review and other customary closing conditions.
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