MediSolution to sell HIS division for
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
“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.
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
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