MDI Technologies to acquire Horizon Healthcare assets
MDI Technologies Inc MDD
Shares issued 11,550,888 MDD.U Sep 30 2003 close us$ 1.57
Wednesday October 1 2003 News Release
Mr. Todd Spence reports
MDI TECHNOLOGIES ACQUIRES HORIZON HEALTHCARE TECHNOLOGIES ASSETS
MDI Technologies has reached an agreement with Horizon Healthcare Technologies (HHT) to acquire substantially all of HHT's assets, including rights to all developed applications, a substantial installed client base and support service contracts, in an all-cash deal. The transaction is expected to close on or before Oct. 1, 2003.
Horizon Healthcare Technologies is a national long-term care accounting/clinical software company doing business in 34 states. MDI Technologies is a major player in this market with approximately 1,100 clients under contract in 47 states. The transaction will include an initial conversion of all HHT clients to the MDI On-Line Advantage suite of programs. HHT will assist in the conversions via short-term consulting agreements. Under the conversion plan, HHT clients will pay conversion fees to MDT for the software. The potential result to MDI is over $700,000 (U.S.) in conversion fees, as well as additional recurring revenues of $4.5-million (U.S.) over the life of agreements that HHT clients will enter into with MDI upon conversion.
"Our acquisition strategy was tested and proven earlier this year on a small scale. This paved the way for a much larger acquisition," said Todd A. Spence, president and chief executive officer of MDI. "This transaction is expected to be accretive to earnings this fiscal year and provides us with the opportunity to market additional MDI products to the HHT client base. The transaction is being financed entirely with surplus cash from operations," Mr. Spence continued.
"Horizon has been a strong player in the long-term-care software market since 1983," said Di Anne Kerrigan, vice-president sales and marketing. "By adding HHT's clients to MDI's base, we not only gain market share but we gain entry into four new states," Ms. Kerrigan concluded.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
