KELOWNA, BC, May 27, 2015 /CNW/ - (TSX-V: QHR) QHR Corporation (the "Company"), a leader in the healthcare information technology sector, is pleased to announce that its wholly owned subsidiary QHR Technologies Inc. ("QHR") has entered into a binding agreement to purchase all of the healthcare assets of Jonoke Software Development Inc. ("Jonoke"), including its proprietary Electronic Medical Record ("EMR") software and its clients.
The all-cash purchase price is tied to an earn-out paid over a period of time during which QHR and Jonoke will be working together to transition Jonoke's clients to QHR's Accuro®EMR system. The earn-out is estimated to be under $500,000 over a three year period.
Jonoke is a privately owned company based in Edmonton, Alberta, with a current client base of over 750 physicians located in Alberta, Manitoba and Ontario which currently generates approximately $1 million in annual support revenues for the Jonoke products. QHR intends to transition these clients to its Accuro platform and, in an effort to ensure a smooth transition and maintain customer support, QHR has offered to employ six of Jonoke's employees.
The Company expects that with the existing Jonoke revenue, this acquisition will be accretive to QHR's earnings in the third quarter of this year.
The agreement provides that Jonoke clients will be encouraged to upgrade to Accuro®EMR and, with the combined experience of both the Accuro and Jonoke product teams working together, QHR is confident that customer's data can be transferred and clients trained on how to use Accuro in a seamless transition.
The Jonoke clients that agree to the Accuro transition will be able to take advantage of the additional features and modern user interface of Accuro, and also be in good standing with the OntarioMD CMS program, since QHR is an approved vendor for both on premise installs and hosted SaaS solutions.
"The Jonoke clients were looking for answers as to the future of their software. We are here to offer them the best EMR platform in Canada, and help them transition smoothly with the direct help of Jonoke staff working together with our teams," says Mike Checkley, President of QHR.
"We have done many successful transitions from other vendors in the market, and I am excited to see Jonoke as part of our growth story," stated Al Hildebrandt, QHR's CEO. "This asset purchase is another example of our ability to execute one component of our growth strategy, through acquisition opportunities.
QHR intends to maintain the existing Jonoke operations in its Edmonton office to provide Jonoke client support and assist with transitions. Jonoke clients will see communication and product demonstrations over the coming months to answer their questions and plan their transitions. QHR has recently transitioned several Jonoke clients, so it already has experience with the Jonoke software, clients and data sets. These clients are positive references for QHR allowing other Jonoke clients to gain from their experiences.
Conference Call - The Company executives will host a conference call at 11:00 AM EDT (8:00 AM PDT) Thursday, May 28, 2015, to discuss the Jonoke transaction on the already scheduled Q1, 2015 quarterly financial information call. To join the conference call, please dial Toll Free 1-888-390-0546, Conference ID# 05040708
On behalf of the Board of Directors
Al Hildebrandt, CEO
About QHR Corporation
QHR is a leader in Healthcare Technology, empowering providers and connecting patients. With an 11-year track record offering what is now the single leading Electronic Medical Records platform in Canada, QHR has a suite of complementary offerings that empower health professionals and drive the Company's growth. The Company's technologies and services enable secure medical records management for clinical environments, empower health providers with tools for virtual care including secure video and messaging, and tools for clinic management including scheduling, billing, and patient management, Health providers choose QHR to drive efficiencies within their practice and improve the quality of care delivered to patients.
Legal Notice Regarding Forward Looking Statements
This news release may contain "forward looking statements" within the meaning of applicable Canadian securities legislation. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statement. Forward-looking statements in this news release include those concerning the Company's intent to transition the Jonoke clients to its Accuro Platform during the earn-out period, its anticipation that those transitions will be smooth and seamless, and its intent to maintain Jonoke's existing operations out of its Edmonton office.
Risks that may prevent or delay the forward looking statements from coming to fruition include the possibility that the transaction will not close as expected, that Jonoke clients might choose not to transition to the Accuro platform, unanticipated costs or expenses in completing the transaction, the effects of the Company's proposed internal restructure, industry regulation; competition; the availability of capital and key personnel, obsolescence, workflow and market factors that may increase costs. QHR is a technology business development enterprise where investment and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. It is the Company's policy not to update forward looking statements except to the extent required under applicable securities laws. Further information on the Company is available at www.sedar.com or at the Company's website, www.QHRtechnologies.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE QHR Corporation
For further information: Jerry Diener, CFO & VP Finance, 250.979.1722, jerry.diener@QHRtech.com; Mike Checkley, President, 250.979.1709, mike.checkley@QHRtech.com