QHR Enters into Agreement to Sell Enterprise Management Solutions Division to Logibec
Monday, December 09, 2013 01:00:00 PM (GMT)
, /CNW/ - (TSX-V: QHR)("QHR" or the "Company") today announced that it has executed a definitive and binding agreement for the sale of substantially all assets and operations of its Enterprise Management Solutions ("EMS") division to Logibec Groupe Informatique Ltée ("Logibec") for the amount of in cash less working capital adjustments and customary expenses (the "Transaction").
Logibec is one of largest healthcare technology companies specialized in the development, marketing, implementation and support of clinical and administrative information systems Logibec is a portfolio company of OMERS Private Equity ("OPE"), the manager of the private equity assets of OMERS, one of largest pension funds. The Transaction is expected to close in , subject to satisfactory completion of closing conditions.
Under the Transaction, Logibec will acquire the assets and operations of the EMS division, including customer relationships, all Quadrant-branded products, related intellectual property, fixed assets and will assume certain liabilities. All employees in the EMS division will be offered employment with Logibec. Logibec will also take over office facility leases in and that are related to the EMS Division.
, President and CEO of QHR, said "Today's announcement is the result of a comprehensive process undertaken by QHR, our Board of Directors and our external advisors to carefully consider alternatives for our EMS division and how the Transaction will impact our shareholders, our customers and our employees. We have made a strategic decision to continue our aggressive focus and growth plans in the Electronic Medical Records (EMR) and Revenue Cycle Management (RCM) markets. In addition, QHR will realize a solid return for the investment we made in the EMS business. This transaction will provide significant financial resources and capacity to accelerate our market growth in the Canadian and US healthcare markets with our EMR and RCM solutions where we believe SaaS model market opportunities can be expanded."
Mr. Hildebrandt added, "Quadrant has been a leader in the healthcare and social services workforce management software market for many years and has earned a strong reputation for solid execution, high-quality products and high-quality support. This acquisition by Logibec, the market leader in , offers the Quadrant product line an excellent home with strong product line synergy and a focus for growth in the workforce management market. Under the ownership of Logibec, our current Quadrant customers can expect continued high-quality service levels and performance. The Quadrant client base should experience a seamless transition with continuous staffing and will become part of largest pure-play healthcare service provider."
"The acquisition of Quadrant accelerates Logibec's effort to offer powerful and scalable solutions in the health and social services market across ," said , Logibec President and CEO. "Building on our established reputation in the area of workforce and financial management solutions for complex care settings, this transaction allows us to consolidate the natural synergies between two sets of market leading offerings and deliver cost-effective solutions to a broader array of healthcare institutions and agencies."
Upon completion of the Transaction, QHR will retain all of its corporate resources, the EMR division and the RCM division in their entirety. Going forward, QHR will remain focused on providing innovative solutions to support healthcare customers across a broad range of high-growth markets within and .
QHR intends to use the net proceeds from the Transaction to continue its acquisition strategy in the EMR and RCM markets and to invest in continued technology research and development for SaaS applications. These strategies have the objective of accelerating revenue and earnings growth, both organically and via acquisition, and strengthening and expanding QHR's leadership position in existing and new markets.
, Chairman of QHR's Corporate Development Committee, said "During the course of this past year our objectives have been to strengthen our management team, focus on stabilizing cash flow, and strengthen our balance sheet. I would like to congratulate Al on today's announcement, I believe Logibec is the best steward for our EMS customers and this is the culmination of completing our objectives for this past year and now we are able to focus on growth in our recurring revenue business model going forward."
"The Transaction will result in QHR having a sharpened focus on driving profitable growth," said , Chief Financial Officer of QHR. "We will continue to focus on refining our cost structure to support scalable growth with improved margins and on our recurring revenue growth model. Approximately of our current run rate of of recurring revenue is derived from our remaining EMR and RCM Divisions. We are fully invested for growth, and as we continue to build our business, we expect to see greater operating leverage going forward."
and are acting as financial advisors, and is acting as legal counsel to QHR.
Conference Call to Discuss the Transaction
executives will host a conference call at () , to discuss the Transaction. To join the conference call, please dial Toll Free 1-888-390-0605, Conference ID #: 09199428
For more about QHR, visit: www.QHRtechnologies.com
About
QHR is a leader in quality and technology, providing software and services in the following markets:
In the Electronic Medical Records ("EMR") market, QHR offers a suite of medical software modules that provide computer-based medical records for family physicians, medical specialists, and surgeons, as well as administrative modules for billing and patient scheduling, that is a key component in the move throughout to provide electronic healthcare records for all Canadians. QHR also provides on-site and off-site (ASP) hosting capabilities for the EMR market.
In the Enterprise Management Solutions ("EMS") market, QHR specializes in workforce management software, which consists of integrated payroll, staff scheduling and human resource software, and customized financial management software built on the Microsoft Dynamics GP platform. These products are targeted at complex healthcare, social services and public safety environments.
In the Revenue Cycle Management ("RCM") market, QHR provides best in class clearinghouse services, with over 1500 payers, which assist US healthcare providers to exchange claim information that ensures accurate revenue management. QHR provides a progressive medical billing service that outsources coding, payer reconciliation and revenue reporting. QHR also supports employer health plan enrolment, employee health plan eligibility and health care interoperability through a 5010 standard based EDI gateway. The RCM markets that QHR services are primarily in the US.