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March 29, 1988

ITL TO PAY INITIAL UKP1.5m TO EXPAND ITS HEALTHCARE SIDE

By CBR Staff Writer

Against the background of current government efficiency drives within the National Health Service, Hemel Hempstead-based Information Technology Plc yesterday announced plans to expand its healthcare computer systems business with the proposed acquisition of Silicon Lab Ltd, a three-year-old supplier of pathology laboratory software, based at Aston University’s Science Park in Birmingham. The acquisition – once cleared with ITL shareholders in April – will merge ITL’s existing healthcare activities with those of Silicon Lab, to produce a new Aston based company called ITL Silicon Lab: initial consideration of an indicated UKP1.5m will comprise 2.5m new ITL shares and a UKP100,000 cash; a further performance-based payment will be made in 1990. ITL Silicon Lab claims it will hold a 40% stake in the UK departmental pathology laboratory systems market, will initially offer two independent products – Silicon Lab’s Computer Integrated Laboratory Management System written in Mumps for DEC hardware, and ITL’s Multilab laboratory automation package which runs on the new Unix-based ITL Series 21; the Mumps package will also be ported to run under Unix within the next nine months. It also plans a Unix-based information management system that will enable hospitals to link resources and cost information and simultaneously provide a regional resources overview to allow trading between the public and private sectors. ITL claims that the healthcare computer market is growing by at least 20% a year and that UKP1.5m has already been earmarked by the UK government for computer spending within the Health Service: similar health administration trends in Europe will also provide additional positive market opportunities for the new subsidiary outside Britain.

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