Nightingale to acquire US-based
MARKHAM, Ont – Nightingale Informatix Corp. announced it has entered
into a binding letter of intent (LOI) to acquire the assets and business
operations of Integrated Healthware Inc., a Boston-area healthcare
software provider for the U.S. market.
Included in the deal is Integrated Healthware’s affiliate, Physician
Strategies, a practice management firm focused on providing claims
processing services to U.S. physicians.
Integrated Healthware/Physician Strategies shareholders will receive
consideration of US$6 million payable in a combination of cash and
Nightingale shares. These shares are escrowed over a two-year period, a
component of which is conditional on future financial performance
targets being met.
Integrated Healthware/Physician Strategies reported total revenues of
approximately US$4 million, over 70 percent of which is recurring
revenue, and EBITDA (earnings before interest, depreciation and
amortization) of US$500,000 for the twelve month period ended December
31, 2005, based on unaudited statements.
This transaction supports Nightingale’s core growth strategy in the
United States. It provides Nightingale with immediate access to a U.S.
billing application and a leading claims processing technology specific
to the U.S., as well as a broad base of loyal customers.
The user base is estimated at 4,500 in multi-disciplinary clinics in 13
states. According to the company, they are ideal candidates for
Nightingale’s comprehensive suite of tools and services.
Integrated Healthware/Physician Strategies offers a broad suite of U.S.
based practice management software (Billing and Scheduling) and an
end-to-end coding and claims processing service. They will be integrated
with Nightingale’s software applications to form a comprehensive
technology platform for the healthcare industry.
Healthware technologies are ideally suited for our U.S. target market,
providing us with one of the most comprehensive suites of physician
desktop tools for practice management and electronic medical records
systems in the U.S. market,” said Sam Chebib
(pictured at left), President and CEO of Nightingale.
“Nightingale and IHPS share a vision on how to accelerate the adoption
of technology tools that enable physician automation in North America,”
said Chebib. “We are very impressed with IHPS management, products and
suite of services and strongly believe that this business combination
will have significant accretive value to both organizations.”
“Nightingale can bring a lot of value to both the IHPS organization and
its client base,” said Jack Bradbury, Chief Executive Officer of IHPS.
“As part of the Nightingale organization, we believe we will be able to
leverage their technology, methodology and investment in sales and
marketing to scale our business in order to capitalize on the tremendous
opportunity that exists in our markets. It is our belief that the IHPS
user base will benefit from many of the products and services that
Nightingale has in their core business, such as the electronic medical
record (EMR) application, as well as the transcription and data
distribution services which are now available through the recently
announced acquisition of HealtheNet.”
The transaction, which is subject to TSX Venture Exchange and regulatory
approvals, and other customary conditions, is expected to close by
spring 2006. In connection with the transaction, the Board of Directors
of both Nightingale and IHPS have approved the transaction.
is Canada’s largest healthcare application service provider (ASP) for
outpatient clinics. Nightingale’s internet-based Electronic Health
Record (EHR), Electronic Medical Record (EMR) and practice management
solutions are designed to help physicians, clinics, hospitals and other
healthcare organizations manage their practices, as well as their
patient records through a secure internet browser. Nightingale’s
solutions offer multi-location, enterprise wide management and reporting
capabilities. Nightingale’s suite of products offer Canadian and United
States physicians leading edge functionality for patient scheduling,
resource scheduling, billing, claims processing, work flow tools,
clinical documentation, laboratory interfaces, document management and
patient portals, and other real-time patient services.
About Integrated Healthware & Physician Strategies, LLC
Integrated Healthware is an innovative software developer for the
healthcare industry in the United States. Its flagship products “Entity”
and “Physician Work Station” (PWS) offer US physicians and their
administrative staff in 13 states the ability to manage their practices,
patients and claims. Entity and PWS are being used by over 4,500 users
to improve the efficiency of their claims processing and clinical data
capture. Physician Strategies, LLC, based in Pembroke,
Massachusetts, uses state-of-the-art technologies to enable its
clients to improve the medical care they provide their patients while
increasing the income potential of their practices. The company’s
mission is to support physicians and physician groups in preserving
practice independence, while delivering quality professional practice
management systems and services that provide significant value to
clients and their patients. In addition to supplying billing and
accounts receivable services, Physician Strategies provides practice
management consulting, financial management, compliance, credentialing,
group purchasing, IS infrastructure development and Web page design