Matria Healthcare Announces The Acquisition OfQuality Diagnostic Services And Entry Into The Cardiovascular Market
MARIETTA, Ga., July 21 /PRNewswire/ -- MATRIA HEALTHCARE, INC.
(Nasdaq: MATR) announced today the acquisition of the assets of Quality
Diagnostic Services, Inc. (QDS), a subsidiary of Endeavor Technologies, Inc.
QDS, a leading cardiac event monitoring company, recorded 1997 revenues of
approximately $7 million, and revenues for the first half of 1998 of
$4.7 million. QDS expects revenues for the second half of 1998 to exceed
$7 million. The transaction, which closed today, will be slightly accretive
in 1998 and is expected to make a significant contribution in 1999.
Incorporated in 1996, Endeavor Technologies creates Web-enabled platforms
for the healthcare industry. Endeavor Technologies' WebMD is an Internet hub
for education, communication, and training for physicians, healthcare
professionals, and patients. Simultaneous with the closing, Matria entered
into a strategic alliance with Endeavor Technologies in which Matria will be
licensed to distribute WebMD. Matria will also develop content for the
Women's Health component of WebMD.
Donald R. Millard, President and Chief Executive Officer of Matria,
commented, "This acquisition is consistent with our strategy to expand our
disease management competency beyond the condition of pregnancy. With the
acquisition of QDS, Matria will immediately penetrate the cardiovascular
market and quickly launch into cardiovascular disease management. QDS's
diagnostic telemedicine program is a strategic fit with Matria's core
competencies. By linking the remote cardiac monitoring capability of QDS with
Matria's expertise in patient assessment, electronic diagnosis and
surveillance, therapeutic interventions, case management and outcomes
measurement, Matria can immediately become a significant provider in the
cardiovascular disease management market." Millard added, "The cardiac event
monitoring business requires similar, but less intensive operating resources
than maternity management and will allow Matria to leverage its management and
corporate staff. Additional synergies will come from Matria's managed care
resources, our more than nine hundred payer contracts, to which we will add
QDS services, and Matria's national delivery system."
Parker H. Petit, Matria Chairman of the Board added, "The market
opportunity and demand for disease management providers, especially those with
expertise in cardiovascular disease, is very strong. We estimate the overall
disease management market to grow to about $6 billion annually with the
cardiovascular disease management segment representing about ten percent of
that market. Currently, very few firms have the capability to deliver
comprehensive programs to this particular industry segment".
The acquisition of QDS by Matria gives Endeavor Technologies the resources
and operating structure to realize its full potential and now positions
Endeavor to focus all of its resources on the development and marketing of
WebMD.
This press release contains forward-looking statements that involve risks
and uncertainties, including developments in the healthcare industry, third-
party actions over which the Company does not have control, and regulatory
requirements applicable to the Company's business, as well as other risks
detailed from time to time in the Company's reports filed with the Securities
and Exchange Commission.
Matria Healthcare, Inc. is the leading disease management provider for the
condition of pregnancy and offers comprehensive obstetrical homecare and
maternity management services to HMOs, indemnity carriers, and employers.
SOURCE Matria Healthcare, Inc.
CO: Matria Healthcare, Inc.; Quality Diagnostic Services, Inc.; Endeavor
Technologies, Inc.
ST: Georgia
IN: HEA
SU: TNM
07/21/98 10:21 EDT prnewswire.com |
