Transaction strengthens Nightingale's balance sheet and positions Company
to focus on driving growth of EMR business
MARKHAM, ON, Feb. 29 /CNW/ - Nightingale Informatix Corporation
("Nightingale" or the "Company") (TSX-V: NGH), one of North America's fastest
growing healthcare software and services providers, today announced the sale
of its Therapist Helper business to Netsmart Technologies Inc., a leading
provider of enterprise-wide software and services for health and human
services organizations, for $12.3 million less any collected deferred revenue.
All figures are in US dollars unless otherwise specified.
"We are sharpening our focus on the markets where we want to continue to
lead," said Sam Chebib, president and CEO, Nightingale Informatix. "Since the
behavioural health industry is not central to our strategy, we saw limited
opportunity to leverage our core strengths in EMR to drive continued growth
through our Therapist Helper business. We are building momentum in the North
American EMR software and associated services market, and with this sale we
will strengthen our balance sheet, particularly by paying down a portion of
our debt, and focus our resources on the key growth areas of our business."
Under the terms of the sale, Nightingale will receive gross proceeds of
$12.3 million, less $1.3 million in deferred revenue collected by Nightingale
prior to closing, for net proceeds of $11 million. In addition, if Therapist
Helper meets certain financial targets within the first year following the
sale, Nightingale would also receive a one-time deferred purchase price
payment of up to $1.1 million. For the nine months ended December 31, 2007,
Therapist Helper generated $3.3 million in revenue.
In conjunction with the sale, Nightingale entered into a perpetual
license and reseller agreement with Netsmart for the provision of
Nightingale's SecureConnect(TM), a proprietary claims processing technology
platform. Under a revenue sharing and royalty fee agreement, Netsmart will
deploy SecureConnect to its behavioural health client base.
Therapist Helper provides practice management and billing software
applications specifically to psychologists, psychiatrists and other therapy
related providers such as speech therapists, physical therapists and
In April 2007, Nightingale acquired VantageMed Corporation for
approximately $13 million. Therapist Helper was one of four businesses
obtained as part of the transaction. The acquired businesses were Therapist
Helper, RidgeMark, Northern Health and SecureConnect.
Nightingale is one of the fastest growing health care service and
software companies in North America with over 4.7 million patient records
under management in a hosted (ASP) environment. It is recognized as an
industry leader in Web-based clinician and community based electronic medical
records (EMR) serving the needs of small primary care practices,
multi-physician outpatient clinics, and large scale regional health
organizations and networks. Coupled with integrated practice management,
transcription and revenue cycle management, Nightingale's comprehensive
service offering allows customers to enhance patient care, increase revenue
opportunities and optimize operations. Nightingale is continuously innovating
and enhancing its services to meet the needs of its growing and diverse
customer base. Nightingale - Healthcare connected. www.nightingale.md.
About Netsmart Technologies, Inc.
Netsmart Technologies, Inc., based in Great River, N.Y., is an
established, leading supplier of enterprise-wide software solutions for health
and human services providers. More than 18,000 customers use Netsmart products
to help improve the quality of life for more than 20 million people each year.
Netsmart's clients include health and human services organizations,
public health departments, mental health and substance abuse clinics,
psychiatric hospitals, private and group mental health practices, vital
records offices and managed care organizations. Netsmart's products are
full-featured information systems that operate on a variety of operating
systems, hardware platforms, and mobile devices, and offer unlimited
Netsmart is privately owned by Insight Venture Partners, Bessemer Venture
Partners, Salmon River Capital and the Netsmart executive management team.
Forward Looking Statement
This press release contains "forward-looking statements" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking statements can be identified by the use of forward- looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may" ,"could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of Nightingale to be materially different from those expressed or
implied by such forward-looking statements, including but not limited to the
speculative nature of the medical software industry, which is affected by
numerous factors beyond Nightingale's control; the existence of present and
possible future government regulation; the significant and increasing
competition that exists in the medical software industry; the early stage of
Nightingale's business; and therefore it is subject to the risks associated
with early stage companies, including uncertainty of revenues, markets and
profitability and the need to raise additional funding.
Although Nightingale has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Nightingale does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in accordance
with applicable securities laws. Further information on Nightingale Informatix
Corporation is available at www.sedar.com.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Dave Mason, Investor Relations, The Equicom
Group, Tel: (416) 815-0700, x237, Email: email@example.com; John Elias,
Media Relations, The Equicom Group, Tel: (416) 815-0700, x239, Email: