LISLE, IL, April 12 /CNW/ - SXC Health Solutions Corp. ("SXC") (NASDAQ:
SXCI, TSX: SXC), announced today it has entered into a definitive
agreement to acquire substantially all of the assets of MedMetrics
Health Partners, Inc. ("MedMetrics"), the full-service PBM subsidiary
of Public Sector Partners, Inc. which is affiliated with a major
"We are very pleased to welcome MedMetrics and its employees into the
SXC fold," said Mark Thierer, Chairman, President and CEO of SXC. "We
have worked with MedMetrics as a client and a partner over the past
seven years; they began with SXC as a healthcare IT client and later
expanded the relationship to include PBM services. This transaction is
in keeping with our strategy to acquire assets that currently utilize
SXC's technology platform and can be easily integrated. We look
forward to leveraging our existing partnership and the strong
MedMetrics footprint in the northeast to continue to grow the SXC
business in that market."
"MedMetrics has had a long-term, collaborative relationship with SXC and
coming together is a natural fit for both of us. The strength of our
relationship combined with the resources that SXC brings to the table
will bring additional opportunities for our clients to improve care
while benefiting from enhanced operational efficiencies," said Jim
Hooley, Interim Managing Director of MedMetrics.
The acquisition is subject to various closing conditions and is expected
to be completed during the second quarter of 2011. MedMetrics manages
approximately $200 million in annual drug spend and is accounted for in
SXC's PBM segment. When taking into account deal-related closing
expenses and related amortization, the acquisition is not expected to
have a material impact to 2011 fully-diluted GAAP EPS.
About MedMetrics Health Partners, Inc.
Founded in 2004, MedMetrics Health Partners, Inc. is a full-service PBM
located in Worcester, Massachusetts. MedMetrics features a unique
business model which focuses on true net cost drug management with full
transparency in all financial transactions and data reporting.
MedMetrics is unique among PBMs because of their association with a
major medical school, which affords direct access to expert formulary
and clinical guidance and academically rigorous, evidence-based
clinical programming support.
About Public Sector Partners, Inc.
Public Sector Partners, Inc. is a health care management and consulting
organization, affiliated with the University of Massachusetts Medical
School's Commonwealth Medicine division. Public Sector Partners offers
a full array of program management and consulting services to public
health and human service agencies and managed care organizations.
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 SXC'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.
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 ability
to complete the acquisition of MedMetrics; 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 and
integrate acquisitions; 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; our dependence on key customers;
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:
| Tony Perkins || || || Dave Mason || || || || Susan Noonan |
| Investor Relations || || || Investor Relations - Canada || || || || Investor Relations - U.S. |
| SXC Health Solutions Corp. || || || The Equicom Group Inc. || || || || S.A. Noonan Communications |
| Tel: (630) 577-4781 || || || (416) 815-0700 ext. 237 || || || || (212) 966-3650 |
| email@example.com || || || firstname.lastname@example.org || || || || email@example.com |