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Emergis to acquire DINMAR, developer of Oacis EMR

MONTREAL – Emergis Inc. announced that it has acquired DINMAR, an Ottawa-based provider of electronic health record (EHR) technology solutions and consulting services to the healthcare community, for $32 million, subject to closing adjustments and contingent consideration.

With this acquisition, Emergis expands its health offerings to include a leading EHR solution for hospitals that supports the integration of a patient’s data from different clinical information systems.

It also facilitates collaboration among healthcare professionals treating the patient from different hospitals within a region.

“DINMAR’s client base complements Emergis’ reach into the health community, adding hospitals and associated physicians. With DINMAR, we significantly advance our strategy to form electronic communities within a broad range of healthcare participants, said François Côté, President and Chief Executive Officer of Emergis. “It has state-of-the-art technology, which we will continue to evolve, and a strong management team which will provide Emergis with in-depth clinical expertise, knowledge of hospital and regional systems, and solid strategies for adoption and for the management of clinical workflow.”

“We are pleased to be joining Emergis,” said Mark Groper (pictured), President and Chief Executive Officer of DINMAR. “With DINMAR, Emergis has established an organization able to provide a more comprehensive set of healthcare solutions at the provincial, regional and multi-hospital levels. Emergis is better positioned to play a prominent role in facilitating improvements in the quality of care and the overall effectiveness of healthcare systems.”

Mark Groper will continue to lead the DINMAR team and will now report directly to François Côté.

DINMAR’s primary solution, Oacis, is an interoperable EHR solution that addresses all aspects of patient record-keeping to support patient management as well as clinical care. An interoperable EHR solution allows clinicians to view and update an integrated patient-centric health record, which includes demographic, diagnostic imaging, drug, laboratory, infectious disease, immunization and other relevant health information anywhere, any time.

It ensures that caregivers have access to complete, accurate, and up-to-date patient records across geographic regions and within multiple provider organizations, which often have different information systems. The Oacis solution supports health care professionals with collaborative tools which permit better informed decisions, driving improvements in the quality of care and patient outcome and enhancing efforts to improve patient safety.

DINMAR’s understanding of industry best practices and insight into future trends also allows it to provide consulting services to a wide range of healthcare providers to help them improve their efficiency and effectiveness.

DINMAR has an impressive roster of clients, including: academic medical centres; teaching and community hospitals; hospital and regional consortia; ambulatory and long-term care facilities; national health care organizations; health care authorities and regulators; Health Maintenance Organizations or HMOs; and managed care organizations. Headquartered in Ottawa, it has regional offices in Toronto, Edmonton, San Francisco and Melbourne, Australia.

The company is targeted to increase Emergis’ revenue by about 10% and EBITDA by about $4 million over the next 12 months. Approximately one third of DINMAR’s revenues are generated outside of Canada. DINMAR has about 100 employees.

Emergis is paying $32 million for DINMAR: $26 million in cash, subject to closing adjustments; and $6 million in Emergis shares to be issued from treasury, including $3 million in shares to be issued in 9 months pending any claims for indemnification. Further consideration of up to $8 million may be given, contingent upon DINMAR’s financial performance exceeding its base targets over the next 12 months. Half of the contingent consideration can be paid in Emergis shares, at Emergis’ option.

About Emergis
Emergis is an IT leader in Canada that focuses on the health and financial services sectors. It develops and manages solutions that automate transactions and the exchange of information to increase the process efficiency and quality of service of its customers. Emergis has expertise in electronic health-related claims processing, health record systems, pharmacy management solutions, cash management and loan document processing and registration. In Canada, it delivers its solutions to the main insurance companies, top financial institutions, government agencies, large corporations, real estate lawyers and notaries, and approximately 40% of all pharmacies. It also processes and enables transactions for the world’s leading payment associations. The Company’s shares (TSX: EME) are included in the S&P/TSX Composite Index.