Henry Schein has picked up right where it left off.
After a 2015 marked by numerous domestic and international acquisitions, the Melville-based healthcare products provider has announced its first acquisition of 2016. The company said Tuesday it would acquire RxWorks Inc., a leading supplier of veterinary practice management software in Australia, New Zealand, the UK and the Netherlands.
Terms of the deal were not disclosed. But RxWorks’ “excellent reputation for helping veterinarians increase practice efficiency and improve healthcare” would be a welcome fit for Henry Schein’s growing international customer base, according to CEO and Board Chairman Stanley Bergman.
“The addition of RxWorks further strengthens our growing practice-management software solutions business,” Bergman said in a statement, noting the acquisition would both “deepen relationships in the regions served by RxWorks with our animal-health customers” and “nicely complement our expanding animal-health technology businesses.”
RxWorks provides veterinary practices with software solutions and other business-management content that addresses a variety of clinical and organizational needs, including billing, automatic appointment reminders and patient-progress tracking. Founded in 1988 and headquartered in Australia, the company reported sales for the 12 months ended June 30, 2015, of approximately $7 million.
According to Henry Schein, the new acquisition boasts a staff of 68 – it’s expected to remain intact, including its management team – and serves a customer base of more than 1,500 veterinary clinics in 19 countries. The Melville parent said it expects to close on the acquisition by the end of January.
“Aligning with Henry Schein … allows RxWorks to provide even further value to customers while expanding industry reach,” RxWorks Chairman Nathan Basha said in a statement.
The RxWorks acquisition mirrors another recent Henry Schein pickup: In November, the Melville firm took a majority share of Vetstreet, a Pennsylvania-based animal-health software maker.
That was one of five international acquisitions the healthcare giant announced in 2015 – including majority shares in an Italian dental-equipment distributor, a German animal-care company and a Scandinavian veterinary-products distributor, and a 50-perent share of a Romanian animal-care manufacturer – and six going back to May 2014, when the company acquired a Massachusetts-based equine-supplement manufacturer.
The company in December also announced a distribution deal with global med-tech provider Medtronic, which selected Henry Schein Medical, a subsidiary of Henry Schein Inc., as its exclusive distributor of selected solutions for Diabetes mellitus type 2 – the most common form of the metabolic disorder – to U.S. primary-care physicians.
The heavy wheeling-dealing has helped Henry Schein’s bottom line consistently reach new heights. The Fortune 500 company – which in 2015 was named to the S&P 500, the prestigious index ranking the 500 largest companies traded on NASDAQ and the New York Stock Exchange – reported $10.4 billion in global sales in 2014, and through three quarters of 2015 was on its way to a new record.
The company reported an 11.3 percent year-over-year increase in 3Q net profits, up from $114.8 million ($1.34 per share) in 2014 to $127.7 million ($1.52 per share) in 2015.
Year-over-year third-quarter sales were also up (to $2.69 billion), with company officials crediting the string of international acquisitions.