LISLE, IL, Jan. 4, 2012 /CNW/ - SXC Health Solutions Corp. ("SXC" or the
"Company") (NASDAQ: SXCI) (TSX: SXC), a leading provider of pharmacy
benefit management (PBM) services and healthcare information technology
(HCIT) solutions to the healthcare benefits management industry,
announced today the completion, effective as of January 1, 2012, of its
previously disclosed acquisition of HealthTran LLC ("HealthTrans"), a
middle-market PBM service company, for a purchase price of $250 million
in cash, subject to certain customary post-closing adjustments. The
purchase price was funded from SXC's existing cash balance and $100
million in borrowings under its five-year, $350 million unsecured
revolving credit facility.
"We are excited to close our acquisition of HealthTrans and bring its
services and talent into the SXC fold," said Mark Thierer, Chairman and
CEO of SXC. "We believe that the combined strength of the two companies
will help fuel SXC's continued growth."
HealthTrans is based in Denver, Colorado, where its operations will
About SXC Health Solutions Corp.
SXC Health Solutions Corp. is a leading provider of pharmacy benefits
management (PBM) services and Health Care Information Technology (HCIT)
solutions to the healthcare benefits management industry. The Company's
product offerings and solutions combine a wide range of PBM services
and software applications, application service provider (ASP)
processing services and professional services, designed for many of the
largest organizations in the pharmaceutical supply chain, such as
health plans, employers, federal, provincial, and, state and local
governments, pharmacy benefit managers, retail pharmacy chains and
other healthcare intermediaries. SXC is headquartered in Lisle,
Illinois with multiple locations in the US and Canada. For more
information please visit www.sxc.com.
HealthTrans is a privately held healthcare management solutions company,
formed in 2000 with a diverse customer base that includes managed care
organizations (MCOs), pharmacy benefit managers (PBMs), workers'
compensation plans, specialty programs, third-party administrators
(TPAs), resellers and government-sponsored plans. HealthTrans'
full-spectrum of healthcare management products and services include
claims processing solutions, full PBM services, medical claims
processing, clinical programs, benefits administration services, mail
order options and discount healthcare programs. For more information,
please visit www.healthtrans.com.
Certain statements included herein, including those that express
management's expectations or estimates of our future performance,
constitute "forward-looking statements" within the meaning of
applicable securities laws. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. We caution that such forward-looking statements involve
known and unknown risks, uncertainties and other risks that may cause
our actual financial results, performance, or achievements to be
materially different from our estimated future results, performance or
achievements expressed or implied by those forward-looking statements.
Numerous factors could cause actual results to differ materially from
those in the forward-looking statements, including without limitation,
our dependence on, and ability to retain, key customers; our ability to
achieve increased market acceptance for our product offerings and
penetrate new markets; consolidation in the healthcare industry; the
existence of undetected errors or similar problems in our software
products; our ability to identify and complete acquisitions, manage our
growth, integrate acquisitions and achieve expected synergies from
acquisitions (in the anticipated timeframe or at all); our ability to
compete successfully; potential liability for the use of incorrect or
incomplete data; the length of the sales cycle for our healthcare
software solutions; interruption of our operations due to outside
sources; maintaining our intellectual property rights and litigation
involving intellectual property rights; our ability to obtain, use or
successfully integrate third-party licensed technology; compliance with
existing laws, regulations and industry initiatives and future change
in laws or regulations in the healthcare industry; breach of our
security by third parties; our dependence on the expertise of our key
personnel; our access to sufficient capital to fund our future
requirements; and potential write-offs of goodwill or other intangible
assets. This list is not exhaustive of the factors that may affect any
of our forward-looking statements. Other factors that should be
considered are discussed from time to time in SXC's filings with the
U.S. Securities and Exchange Commission, including the risks and
uncertainties discussed under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our 2010 Annual Report on Form 10-K and
subsequent Form 10-Qs, which are available at www.sec.gov. Investors are cautioned not to put undue reliance on forward- looking
statements. All subsequent written and oral forward-looking statements
attributable to SXC or persons acting on our behalf are expressly
qualified in their entirety by this notice. We disclaim any intent or
obligation to update publicly these forward-looking statements, whether
as a result of new information, future events or otherwise.
SOURCE SXC Health Solutions Corp.
For further information:
SXC Health Solutions Corp.