Global Med Technologies has inked a $11.5 million deal to acquire private European software company Inlong, SA, and its German and related subsidiaries.
Inlog, based in Lyon, France, with additional operations in Grenoble, France, and Munich and Alzey, Germany, is a leading European provider of donor center and transfusion information management systems as well as laboratory information systems and other ancillary medical software systems. Inlog's management is planning to stay with the company.
"We truly believe that the combined Global Med/Inlog Company will become a global leader in donor center and transfusion medicine software," said Renaud Blanc-Bernard, CEO of Inlog. "Together we believe that we will gain economies of scale that will enable our products to evolve in sync with the rapidly changing international blood center, transfusion service and laboratory marketplace. We are also excited for our customers who will gain access to new products and services. This is truly a win-win for Global Med, Inlog, our employees, our combined substantial international customer base and the industry."
Under the agreement Global Med will pay $11.5 million for the company in a combination of cash, stock and earnout. Inlog's shareholders must use $500,000 of the cash proceeds to purchase Global Med common stock in the open market within three months of the closing. Global Med will use a combination of existing cash and debt to pay for the transaction, which is expected to close in the second quarter of 2008.
"The acquisition of Inlog by Global Med is a transforming event in the history of our company," said Michael I. Ruxin, MD, chairman and CEO of Global Med Technologies, Inc. "At the completion of this acquisition, we will truly be a global company, with blood and laboratory software applications in 20 countries. This includes 582 donor center sites, 458 hospital sites and 360 laboratories world-wide, for a total of 1,400 sites."
Inlog has been developing, implementing and supporting its blood bank information management solutions since 1992 with more than 700 sites in 15 countries using its products. Inlog's product line consists of five primary products: EdgeBlood, for the donor center marketplace; EdgeTrack, for the hospital transfusion marketplace; EdgeLab, a laboratory information system; EdgeCell, for cellular therapy for tissue banks, stem cell centers and cord blood centers; and SAPA, which supports regulatory compliance and document management.
"Inlog's capability and experience in handling international implementations including France, which processes millions of donations per year, opens up new markets and opportunities for Global Med," said Thomas F. Marcinek, Inlog's president and COO. "We see a need in the global marketplace for a company with proven blood bank products, experience with national implementations, multi-lingual applications and strong service offerings that are financially sound and well capitalized. Together with Inlog, we believe that Global Med is strategically poised and will aggressively market these strengths to potential customers around the world which will continue to expand our market share."