Transaction strengthens Nightingale's balance sheet and positions Company
to focus on driving growth of EMR business
MARKHAM, ON, Feb. 29 /PRNewswire-FirstCall/ - Nightingale Informatix Corporation ("Nightingale" or the "Company") (TSX-V: NGH), one of North America's fastest growing healthcare software and services providers, today announced the sale of its Therapist Helper business to Netsmart Technologies Inc., a leading provider of enterprise-wide software and services for health and human services organizations, for $12.3 million less any collected deferred revenue. All figures are in US dollars unless otherwise specified.
"We are sharpening our focus on the markets where we want to continue to lead," said Sam Chebib, president and CEO, Nightingale Informatix. "Since the behavioural health industry is not central to our strategy, we saw limited opportunity to leverage our core strengths in EMR to drive continued growth through our Therapist Helper business. We are building momentum in the North American EMR software and associated services market, and with this sale we will strengthen our balance sheet, particularly by paying down a portion of our debt, and focus our resources on the key growth areas of our business."
Under the terms of the sale, Nightingale will receive gross proceeds of $12.3 million, less $1.3 million in deferred revenue collected by Nightingale prior to closing, for net proceeds of $11 million. In addition, if Therapist Helper meets certain financial targets within the first year following the sale, Nightingale would also receive a one-time deferred purchase price payment of up to $1.1 million. For the nine months ended December 31, 2007, Therapist Helper generated $3.3 million in revenue.
In conjunction with the sale, Nightingale entered into a perpetual
license and reseller agreement with Netsmart for the provision of
Nightingale's SecureConnect(TM), a proprietary claims processing technol
|SOURCE Nightingale Informatix Corporation|
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