Bluestar is a specialist developer and supplier of innovative healthcare IT solutions. These include the 'Pathfinder' Radio-Frequency ID (RFID) system for tracking patients and equipment, the Kings Infection Control System, and the 'IGFlow' Information Governance product which helps healthcare providers manage confidential patient data. Bluestar also provides healthcare advisory services through its team of 30 consultants.

During the last two years, Bluestar has supplied software and services to over 25 NHS Trusts, and is well respected for work in patient safety, clinical benchmarking, and the creation of cost-effective diagnostic services such as regional pathology networks.

System C intends to use its scale and market presence to bring Bluestar technologies to a wider audience, and work is already underway to provide its 'IGFlow' Information Governance product as a data centre hosted service to multiple NHS Trusts.

Bluestar's products complement System C's Medway Sigma range of healthcare computer systems, and their products will be integrated with, and sold alongside, Medway Sigma. For example, Pathfinder will be used to offer patient and instrument tracking to System C's Patient Administration System (PAS), accident and emergency, and theatre system users. The Board believes that these advanced technology features represent an excellent fit with System C's new generation Medway Sigma software.

In addition to Bluestar's range of complementary software products, Bluestar's healthcare IT services also strongly complements those of System C. Bluestar offers programme office support, business case production and change management as well as more traditional IT services such as network and infrastructure consulting. Combined with System C's design, build, test, deployment and healthcare improvement services, the expanded group is now in a position to offer a complete range of consulting services to the NHS, private and independent sectors.

The consideration for the acquisition is £0.4 million in cash on completion, with up to a further maximum of £2.6 million payable in cash over three years from completion. Payment of the maximum deferred consideration is subject to Bluestar achieving total aggregate profit before taxation of £2.12 million over the three year period, and is capped in each year based on annual targets. The consideration is to be funded from System C's existing resources.

In the year to 31 October 2008, Bluestar Group reported revenues of £2.7 million, profit before taxation of £0.2 million and had net assets at completion of £0.2 million.

System C's chief executive, Ian Denley, commented: "This is an excellent acquisition for System C which brings us a range of exciting healthcare technologies and products, and further strengthens our healthcare consulting capabilities."

Tony Corkett, founder and chief executive of Bluestar, highlighted the synergies between the companies. "System C's excellent track record in the development of healthcare IT solutions, combined with their proven deployment capability and experience, are a perfect match for us. Their reputation, their client base and their size will open up many new opportunities for us."

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• System C Healthcare's Profile

About System C Healthcare plc
System C Healthcare plc (www.systemc.com), specialises in the design and development of clinical patient management and business intelligence software, and provides systems implementation and consulting services to the health sector.

System C Healthcare is quoted on the AIM market of the London Stock Exchange (SYS.L).