QHR enters binding deal for Jonoke's health care assets Wednesday May 27 2015 - News Release
Mr. Al Hildebrandt reports
QHR STRENGTHENS MARKET LEADERSHIP POSITION WITH THE ACQUISITION OF JONOKE SOFTWARE ASSETS
QHR Corp.'s wholly owned subsidiary QHR Technologies Inc. has entered into a binding agreement to purchase all of the health care assets of Jonoke Software Development Inc., including its proprietary electronic medical record 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 AccuroEMR 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 AccuroEMR 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
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