Birketts advise on multi-million pound sale of family-owned IT business
Birketts has advised on the multi-million sale of family-owned business Burnbank Systems Limited to the world-leading Sectra Group.
Established in 1988, Burnbank Systems Ltd is a family-owned company based in Ipswich. It provides IT services to the UK healthcare sector and most recently built up a significant medical image exchange system which is currently used by over 290 hospitals in the UK. Around 20,000 radiology exams are sent through the system each week.
Nathan Muskett, senior associate at Birketts, advised on the acquisition of Burnbank Systems Ltd by the world leading IT and medical technology company Sectra Group, which is listed on the Stockholm stock exchange.
Commenting on the deal, Nathan said: “I’ve worked with Burnbank Systems owners Peter and Emma Young for a number of years and I’m delighted to have advised on the sale.
“The deal not only highlights the depth and extent of our capabilities in advising family-owned businesses but also in niche and complex areas of law. Having a listed Swedish buyer on the other side threw-up some complexities but we have a proven track record of advising on cross-border sales. Our experience in the IT sector and central government related contacts also played a major role in securing the right deal.”
The acquisition encompasses the three Ipswich based companies Burnbank Systems Limited, Burnbank Healthsystems Limited and Burnbank Dataconnect Limited. Sectra has now assumed control and the business and it will be consolidated in the Sectra Group later this month. The cash purchase consideration amounted to GBP 5 million and the transaction encompasses an additional purchase consideration of up to 3 million.
Burnbank will continue to operate under its existing brand as a separate business unit within Sectra’s Medical Systems business area. Peter Young, and all 25 employees, will stay on in the business.
“The acquisition by Sectra provided us with the opportunity to expand and explore international markets,” explained Peter Young. “Sectra has proved that it is strong in providing cross enterprise workflow solutions and this is an area that Burnbank has dedicated itself to. Our business development will continue to be based on the premise that all care providers and hospitals can use our services, regardless of which IT systems they have in place, to exchange and share medical images and reports.
“However, this was not just an important decision for the business and our staff, it was also an important decision for me. It was a complex process which we would not have been able to complete without Nathan’s support and commitment and his in-depth knowledge of our business”
Torbjörn Kronander, President of Sectra’s Medical Systems business area, added: “Burnbank has built up a successful operation with exciting business development potential. Combined with the existing services Sectra offers the healthcare sector we will be able to provide further benefits for all our customers. We would like to take this opportunity to thank Nathan Muskett and his team at Birketts for all their hard work to bring about a successful sale.”