29th Sep 2023 11:05
(Alliance News) - Emis Group PLC on Friday said the UK Competition & Markets Authority cleared its acquisition by UnitedHealth Group Inc to proceed.
The healthcare software and services provider said the CMA confirmed that the deal did not raise competition concerns "when considered against the higher legal standard that applies to phase 2 investigations."
The CMA referred the transaction to phase 2 investigation in March. In June last year, Emis agreed to a GBP1.24 billion takeover offer by Bordeaux UK Holdings II, an affiliate of Optum Health, which is a subsidiary of UnitedHealth.
The CMA said it was initially concerned that the acquisition would "allow Optum to limit its competitors' access to the data held within Emis's patient record system or to degrade the digital connections to this system, which rivals rely on to provide integrated software."
UnitedHealth's subsidiary Optum supplies software used by general practitioners when prescribing medicines, while Emis supplies data management systems, including the electronic patient record system used by most GPs.
Following the decision, Emis said the sanction hearing for the deal has been scheduled for October 25.
Subject to the court sanction, the firm said expects the acquisition to become effective on October 27.
Emis shares rose 0.5% to 1,932.00 pence each on Friday morning in London, while UnitedHealth shares closed up 1.3% at USD510.10 on Thursday in New York.
By Harvey Dorset, Alliance News reporter
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