Assistive technology company Doro has acquired Eldercare UK in a move that is in line with its ambition to become the European market leader in technology-enabled care.
Together with its existing business in the UK, the agreement will see Doro will handle over 230,000 connections and be one of the two largest players in the sector.
Doro said it will pay around £2.2m on cash- and debt-free basis for the acquisition of Eldercare. Revenue for Eldercare for the financial year 2018/19 was £4.6m.
Carl-Johan Zetterberg Boudrie, president and CEO of Doro Group, said: “A strong position in the UK market is an important component in our ambition of becoming a leading technology enabled care service provider. The strategic acquisition of Eldercare gives us a strong position in the North of England, enabling us to reach out to new customers looking for a more local response.
“As a Care Quality Commission (CQC) registered business, their domiciliary care services bring additional insight and services to our portfolio, enabling Doro to further extend its services to increase support to more people to live healthy, happy and secure lives.”
The Eldecare business employs 109 full-time equivalent staff and monitors around 50,000 telecare connections, incorporating a range of devices, as well as providing visiting services, including emergency mobile response.
Talking about the decision to sell the business, Chris Hopkinson, CEO of Eldercare said: “When we decided the time was right to step-change the development of our telecare services, we knew we needed an excellent partner. We chose Doro because we were impressed by their record of providing quality products and experience of delivering digital telecare solutions.
“They have shown their commitment to continue to improve and innovate the services we offer to our customers, as well as facilitating the transition to digital telecare in the UK. We believe our customers will be in safe hands with Doro.”
The acquisition will be consolidated into Doro Group from August 11, 2020 and is expected to have a negligible effect on earnings per share for 2020 including transaction costs.