Healthvision is setting its sights on the Canadian market with the acquisition of MediSolution, Ltd.'s healthcare unit.
In a deal announced Wednesday, the Dallas-based provider of healthcare IT solutions, formerly known as Quovadx, will purchase the Health Information Services division of Montreal-based MediSolution for $49.5 million in cash. The deal includes MediSolution's revenue cycle management product (formerly known as MediAR), as well as its electronic health record systems, patient management suite, clinical department systems, lab information systems and public health and community care solutions but excludes MediSolution's core resource management suite of products and blood bank product line.
"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, MediSolution's president and CEO. "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."
MediSolution shareholders will vote on the proposed deal at an August 26 special meeting. As part of the transaction, a subsidiary of Brookfield Asset management, Inc., the holder of approximately 60 percent of the outstanding common shares in MediSolution, has entered into an agreement to vote its common shares in favor of the transaction.
"The ever increasing demands for information in the right place and time within a healthcare organization make this acquisition a natural fit for Healthvision in the Canadian market." Said Russell Fleisher, Healthvision's CEO. "We continue to search for new acquisitions that allow our existing customers to benefit from newly acquired product offerings as well as benefit new customers with Healthvision's existing products and services."
Healthcare's software solutions, powered by the Cloverleaf Integration Suite, are being used by 40 percent of all Integrated Delivery Networks and 33 percent of all hospitals in the United States, company officials say.
Healthvision and MediSolution officials have been discussing ways to cross-sell relevant products, including system integration, blood bank, financial management, human capital management and business intelligence solutions. Following completion of the deal, Healthvision's Canadian business will be based in Montreal, with satellite offices in Quebec City and Toronto.
Is this a good deal for both companies? E-mail your comments to Managing Editor Eric Wicklund at eric.wicklund@medtechpublishing.com.