MILWAUKEE – The merger agreement between Merge Healthcare Incorporated and Boston-based AMICAS, Inc. was finalized on Wednesday, creating a leading medical imaging software and healthcare IT provider with strong customer relationships, significant cross selling capabilities, and a solid international presence.
In the deal, a subsidiary of Merge acquired all outstanding shares of AMICAS common stock for $6.05 per share. To finance the transaction, Merge successfully placed $200 million senior secured notes due 2015, and completed a private placement of preferred and common stock of $41.75 million. In conjunction with the completion of the transaction, the stock of AMICAS has ceased trading on the NASDAQ Stock Market.
Acording to officials, with a combined customer base of approximately 1500 hospital and 2200 outpatient sites in the U.S. alone, a complementary product suite, and distribution agreements in over 35 countries, Merge is well-positioned to capitalize on the expected growth in the global medical imaging and healthcare IT markets.
"Merge and AMICAS each have a rich history of delivering innovative solutions for the medical imaging and healthcare IT markets," said Merge CEO Justin Dearborn in a statement. “Despite some overlap in the outpatient imaging market, our solution sets are highly complementary. As a combined business, we will have excellent coverage for imaging and healthcare IT solutions across the continuum of care – from outpatient imaging sites to radiology, cardiology, and enterprise solutions serving the hospital market."
For outpatient imaging businesses, the newly combined company will offer revenue cycle management solutions, radiology information systems, referring physician connectivity software and radiology PACS and CAD solutions.
For hospitals, Merge will offer interoperability and healthcare IT solutions, as well comprehensive departmental solutions for cardiology, radiology, and perioperative departments. Additionally, the entire solution set will be delivered internationally, through established global channels. In 2009 alone, Merge signed distribution contracts in 24 countries.
“Healthcare providers are facing reimbursement challenges, stimulus funding requirements, interoperability issues, and the need to improve effectiveness and efficiency of their clinicians,” said Dearborn, “and they want cost effective applications that will solve these challenges. Merge and AMICAS each have decades of experience with a core focus on medical imaging and healthcare IT software development, and the resulting long term customer partnerships. Together, we can more efficiently bring the right solutions to meet the demands of the market.”
Earlier this week, Merge announced the scheduling of its first quarter earnings call, which will take place at 8:30 a.m. EDT on Thursday, May 6.
