Nightingale to acquire HealtheNet and
MARKHAM, Ont – Nightingale Informatix Corp., a major Canadian developer
of Electronic Medical Record systems for physician practices, has
announced plans to acquire the U.S. and Canadian assets of HealtheNet
Inc., a leading healthcare information technology (IT) provider, and its
affiliate, Scribes Inc.
HealtheNet, a Delaware company, has integrated its physician desktop
technology with Scribes medical transcription services, offering its
clients a seamless process for dictating clinical documents and
distributing finished products to stakeholders.
HealtheNet shareholders will receive (Cdn) $7.125 million, payable in a
combination of cash and Nightingale shares escrowed over a two year
period, a component of which is conditional on future financial
HealtheNet reported total revenues of approximately $5.5 million for the
latest 12-month period ended August 31, 2005.
The transaction forms part of Nightingale’s core growth strategy. It
provides Nightingale access to the U.S. healthcare market through
HealtheNet’s client base, where Nightingale’s technologies can be
deployed to provide HealtheNet’s clients with best-of-breed tools.
Similarly, Nightingale’s clients in Canada will benefit from the
expanded service and technology currently delivered by HealtheNet to the
Nightingale is planning to amalgamate operations of both HealtheNet and
Nightingale in the United States and to focus immediately on leveraging
HealtheNet’s client base to expand its offerings to other facilities.
HealtheNet is focused on building a central point of access for
disparate healthcare information systems. The system is said to enhance
workflow and create efficiencies by reducing data duplication.
combination of Nightingale with HealtheNet will create a leading
healthcare IT vendor in Canada and the United States, offering one of
the most comprehensive suites of physician desktop tools for practice
management, clinical data distribution, parsing and clinical
transcription systems on the market,” said Sam Chebib
(pictured at left), president and CEO of Nightingale.
“Nightingale and HealtheNet share a vision on how to accelerate the
adoption of electronic health records and physician technology tools and
services across North America,” said Chebib. “We are extremely excited
about joining with HealtheNet and believe our combined offerings
demonstrate where healthcare solutions are headed to better meet the
needs of our customers and prepare them for the future.”
“Nightingale has grown substantially in recent years, and we believe our
opportunities for continued growth and expansion will be best realized
through the additional technologies and tools that Nightingale can
provide,” said Reuben Buckareff, chief executive officer of HealtheNet.
“As part of Nightingale, we believe we will be able to capitalize more
fully on the rapidly expanding opportunities in the North American
healthcare IT industry and establish ourselves as the undisputable
leader in ‘physician satisfaction’ through innovative technologies.”
Buckareff said HealtheNet currently provides services to over 18,300
users in five major U.S. markets. “Nightingale will expand our service
offerings substantially with these current users,” he added.
HealtheNet is moving toward being an aggregator of patient-centric
information by becoming the premier source for efficient medical data
collection. Its ASP model incorporates a transaction fee structure,
which eliminates the need for large capital expenditures by healthcare
Brookwood Medical Center located in Birmingham, Alabama and part of
Tenet Healthcare, has been a leading HealtheNet client and has deployed
much of the new technology developed in the last 18 months. “We’ve been
very pleased with the operational and productivity enhancements we have
realized by implementing HealtheNet at Brookwood, and we look forward to
further enhancing our ability to better serve our patients with the
addition of the Nightingale suite of products,” said Garry Gause, CEO,
Brookwood Medical Center.
HealtheNet currently services clients in Northwestern New York such as
the Kaleida Health System in Buffalo and the Erie County Medical Center.
HealtheNet has recently established relationships with a major
healthcare system in Pensacola, Florida, which operates facilities along
the Gulf Coast from Mobile, Alabama to Panama City, Florida, and St.
Vincent’s Hospital in Birmingham, Alabama.
The transaction, which is subject to TSX Venture Exchange and regulatory
approvals, and other customary conditions, is expected to close by early