Thursday, January 08, 2009

Emageon Deal Back On

According to Health Data Management, Health Systems Solutions' purchase/merger of Emageon is still going to happen:

Health Systems Solutions Inc.'s pending acquisition of diagnostic imaging software vendor Emageon Inc. remains on track, says Michael Levine, CFO of New York-based Health Systems.

"We've never been in a situation where we said the deal is off," Levine told Health Data Management in a telephone interview. "It's always been a timing situation."

Health Systems in late December was ready to close the $62 million acquisition of Birmingham, Ala.-based Emageon. But Stanford International Bank Ltd.--its financial backer and principle shareholder--wasn't prepared to close and needed additional time, Levine says.

Levine attributes the delay to the financial industry crisis, which he calls "a historic period of time." Stanford International, he adds, has told Health Systems they expect to fund the acquisition on or before the new closing date of Feb. 11.

Stanford is not doing additional due diligence on Emageon before agreeing to the acquisition, Levine says. "They have agreed to our assessment that we were set."

I guess we'll see what happens come February 11. Of 2009, I assume.

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