Induction Healthcare set to acquire Zesty, valuing the company at £12.7m

Induction Healthcare has entered into a conditional share purchase agreement to acquire Zesty Limited, the digital healthcare patient engagement platform.

The healthcare collaboration app from Induction Healthcare, supports over 140,000 users across the UK, Ireland, Australia and South Africa. It’s used by mostly doctors to support communication, messaging and document sharing in a clinical setting. In the past year the company has seen its user base grow by over 60%.

The company has now announced it intends to acquire Zesty, pending shareholder approval on 5th June, for £500,000 in cash and 12,424,527 New Ordinary Shares, valuing the company at £12.7 million.

Zesty recently secured a deal with The Royal Wolverhampton NHS Trust to deliver its digital patient portal to support around half a million people, over the next 5 years.

For the year ended 31 December 2018, Zesty reported revenue of £1.04 million and a net loss before tax of £0.51 million, with a net current asset position of £0.33 million as at 31 December 2018.

Following the acquisition, Induction Healthcare plans to pool its sales and software resources to provide synergies. James Balmain will be appointed to the position of Joint-CEO of the Group, a role that will be shared with Dr Hugo Stephenson, current CEO of the Group.

Dr Hugo Stephenson, CEO of Induction, said “Zesty has demonstrated that it can improve patient experience while saving hospitals time and money through its patient portal and outpatient bookings engine. In the process, Zesty has solved the problem of integrating with different electronic patient record systems.”

James Balmain, CEO of Zesty, said “I see the frustration that clinical teams and patients feel every day. Basic things, like updating a patient record or booking an appointment – are just not easy enough. So an app for doctors, connected to an app for patients makes total sense. Induction and Zesty coming together can help improve the way healthcare is delivered.”

“I am excited by the reach and capability of the new combined Induction Group. We will be working as hard as we can to help bring clinical teams and patients together, in an efficient and low-friction way. The COVID-19 pandemic has focused minds within healthcare on the benefits of using digital technology in all sorts of ways – I think we can and should be doing more.”