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Companies

MediSolution to sell HIS division for $49.5 million

MONTREAL – MediSolution Ltd. announced that it has entered into an agreement to sell its Health Information Services division, including its revenue cycle management product (formerly known as MediAR), to a wholly owned subsidiary of Healthvision Solutions Inc. (formerly Quovadx Inc), a leading provider of healthcare specific software and services, for $49.5 million in cash.

The transaction excludes Medisolution’s core resource management suite of products and the blood bank product line, which will remain with the company. Ten percent of the base purchase price, or $4,950,000, is payable on a deferred basis no later than one year from the closing date.

“Following an unsolicited approach by a potential buyer, we have thoroughly analyzed the financial and strategic options for the company and believe that the value inherent in this transaction is in the best interests of all of our shareholders,” said Paul Lepage, President and Chief Executive Officer of MediSolution.

“MediSolution will continue to provide our entire base of healthcare and service organizations with a comprehensive suite of world-class enterprise resource planning products, in addition to maintaining and growing our blood bank business.”

Headquartered in Dallas, Texas, Healthvision is known for delivering innovative, cost-effective solutions that satisfy the unique needs of the healthcare community.

The company’s current product set, powered by the Cloverleaf integration suite, ensures the right people in healthcare organizations have the right information to make the right decisions at the right time.

MediSolution and Healthvision have discussed working closely together to cross-sell relevant services, such as system integration, blood bank, financial management, human capital management and business intelligence solutions to each other’s customer bases.

Following completion of the transaction, Healthvision’s Canadian operations will be headquartered in Montreal with office locations in Quebec City and Toronto.

Subject to the satisfaction of all of the conditions to closing, the transaction is anticipated to close on or about August 27th, 2008.

Following completion of the transaction, the board of directors will consider the alternatives available to MediSolution for the cash proceeds, including capital required to support its core Resource Management division and to maintain a strong balance sheet.

About MediSolution
MediSolution (TSX:MSH), a Brookfield Asset Management company, is a leading healthcare and public sector information technology company, providing software, solutions and services to customers across North America. More than 500 hospitals and other healthcare facilities and close to 200 public sector and related organizations rely on MediSolution’s systems to maximize their operational efficiencies, lower their costs, and improve the delivery of services. MediSolution has two operating segments. The Resource Management Systems segment is comprised of Financial Management software such as accounts receivable, budgeting and materials management as well as Human Capital Management tools including human resource management, staff scheduling and payroll processing. The Healthcare Information Systems segment is comprised of clinical solutions such as patient tracking, electronic health records, pharmacy, radiology and laboratory software for healthcare organizations. For more information, visit www.medisolution.com.

 

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