Nightingale Continues Growth Momentum with Acquisition of U.S.-based Practice Management Software Business from Medrium Inc.
18 Dezember 2011 - 5:14AM
PR Newswire (Canada)
- Transaction expands Company's North American footprint and
enhances its technology leadership - - Transaction follows
Company's recent win of one of the Largest EMR Contracts in Canada
- - Company to host a conference call December 20(th) at 8:30 a.m.
- MARKHAM, ON, Dec. 19, 2011 /CNW/ - Nightingale Informatix
Corporation www.nightingalemd.com "Nightingale" or "Company", an
application service provider (ASP) of electronic medical record
(EMR) software and related services, today announced that it has
acquired all the assets related to Medrium Inc's (Medrium)
Practice Management software business. "This transaction is another
step toward gaining critical mass and positioning us as a leading
North American healthcare technology company," said Sam Chebib,
President and CEO of Nightingale. "We are expanding our reach
across Canada and further strengthening our foothold in the U.S.
market. In addition, this better equips us to further our product
leadership with the expansion of our technology platform and
development team. We expect this transaction to add in excess of
$2.0 million annually to our base of recurring revenue and to be
immediately accretive to EBITDA. In addition, we believe there are
opportunities to recognize operating cost synergies as we integrate
our offerings." Through this transaction, Nightingale is acquiring
Medrium's cloud-based Practice Management solution that is
currently used by 1,500 U.S.-based healthcare practitioners at
small- and medium-sized clinics as well as billing service
companies under a Software-as-a-Service delivery model. In
addition, Nightingale is acquiring a development team in Quebec,
expanding its Canadian footprint into new market regions, and
further strengthening its U.S. customer support infrastructure with
an additional office in California. Under the terms of the purchase
agreement, Nightingale will pay US$1.75 million in cash for the
assets. Medrium's Practice Management business generated
approximately US$2.30 million in annual recurring revenue and
approximately US$650,000 in annual EBITDA. The Company expects that
operational synergies post-closing will further improve the EBITDA
contribution of the acquired business. The Company expects the
transaction to close on, or around, December 19, 2011. "We are
excited to be adding to the Nightingale team and expanding our
healthcare technology expertise through this acquisition,"
continued Mr. Chebib. "We believe the acquired Practice Management
software will integrate well with our web-based EMR and Practice
Management offering, Nightingale On Demand, creating an ever better
overall solution for our customers. The additional U.S.
customers represent an excellent cross sell opportunity for our EMR
given we are funding eligible under the meaningful use criteria,
and with a presence in Quebec, we believe we are now better
positioned to accelerate sales of our bilingual EMR in regions of
Canada where French is a requirement." The acquisition will be
funded in cash only. Nightingale will not issue securities as a
result of this transaction. In relation to the acquisition, the
Company will be adding US$2.5 million of senior term debt to its
existing CDN$1.0 million senior term debt facility for a combined
term of 48 months. Nightingale is not acquiring any of the other
service businesses operated by Medrium Inc. This transaction
follows the Company's December 6(th), 2011 announcement regarding
its EMR contract win with the Association of Ontario Health Centres
(AOHC). Covering 3,500 healthcare providers across Ontario, the
contract with the AOHC is valued at approximately CDN$9.0 million
over the first three years. Conference call details Nightingale
will host a conference call on Tuesday, December 20(th), 2011, at
8:30 a.m. Eastern Standard Time. To access the conference call,
dial (888) 231-8191 or (647) 427-7450. Please connect approximately
fifteen minutes prior to the call, and reference conference ID
37458326 prior to the beginning of the call to ensure
participation. The conference call will be archived for replay
until Tuesday, December 27, 2011. To access the archived conference
call, dial 416-849-0833 or 1-855-859-2056 and enter reference
37458326#. To listen to the conference call replay on the internet
please visit the Nightingale website shortly after the call at
www.nightingalemd.com. About Nightingale Informatix Corporation
(www.nightingalemd.com) Nightingale is one of the fastest growing
health care service and software companies in North America and is
recognized as an industry leader in Web-based clinician and
community based electronic medical records (EMR) serving the needs
of small primary care practices, multi-physician outpatient
clinics, and large scale regional health organizations and
networks. Coupled with integrated practice management,
transcription and revenue cycle management, Nightingale's
comprehensive service offering allows customers to enhance patient
care, increase revenue opportunities and optimize operations.
Nightingale is continuously innovating and enhancing its services
to meet the needs of its growing and diverse customer base.
Nightingale - Health care connected. www.nightingalemd.com
About Medrium Medrium serves physicians and medical practices by
providing web-based billing solutions that optimize and expedite
reimbursement and increase backend efficiencies. Physicians benefit
from the user-friendly, web-based solution that offers 24/7 access
to patient records, real-time claims' status and payment
processing. As a custom-built system, Medrium's technology is
scaleable to support rapid expansion. The Company is continually
adding new enhancements to ensure physicians and practices a great
return on their investment. Forward-Looking Statement This press
release contains "forward-looking statements" respecting the
issuance and cancellation of securities of the Company within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking statements can be identified by the use of forward-
looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may" ,"could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Nightingale to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: the risk
that the Medrium acquisition will not achieve the expected levels
of revenue and EBITDA accretion; the risk of unanticipated
liabilities inherent in the Medrium acquisition; the risk that the
anticipated synergies will not be achieved to the extent
anticipated or at all ; risks related to the
speculative nature of the medical software industry, which is
affected by numerous factors beyond Nightingale's control; the
ability of Nightingale to successfully integrate its acquisitions
and any liabilities arising as a result of such acquisitions,
access to capital and agreements with its Lenders; the existence of
present and possible future government regulation; access to debt
or equity financing and agreements with its Lenders; the
significant and increasing competition that exists in the medical
software industry; the early stage of Nightingale's business; and
therefore it is subject to the risks associated with early stage
companies, including uncertainty of revenues, markets and
profitability and the need to raise additional funding. All
material assumptions used in making forward-looking statements are
based on management's knowledge of current business conditions and
expectations of future business conditions and trends. Although
management believes the assumptions used to make such statements
are reasonable at this time, our assumptions may not to be as
anticipated, estimated or intended. Certain material factors or
assumptions applied by management in making forward-looking
statements, include without limitation, factors and assumptions
regarding Nightingale's continued ability to fund its business,
rates of customer defaults, relationships with, and payments to,
lenders, demand for Nightingale's products, as well as
Nightingale's operating cost structure. Although Nightingale has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Nightingale
does not undertake to update any forward-looking statements that
are incorporated by reference herein, except in accordance with
applicable securities laws. Further information on Nightingale
Informatix Corporation is available at www.sedar.com. Neither the
TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release. Nightingale Informatix Corporation CONTACT: Media
InquiriesJohn BodolaiNightingale Informatix CorporationTel:
905.307.3650jbodolai@nightingalemd.comInvestor InquiriesMichael
FordCFO, Nightingale Informatix CorporationTel:
905.307.7870mford@nightingalemd.comKristen Dickson, M.Sc.TMX
EquicomTel: 416.815.0700 ext. 273kdickson@equicomgroup.com
Copyright
Nightingale Informatix Corporati (TSXV:NGH)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Nightingale Informatix Corporati (TSXV:NGH)
Historical Stock Chart
Von Jul 2023 bis Jul 2024