KELOWNA, BC, Dec. 9, 2013 /CNW/ - QHR Corporation (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 $20 million in cash less working capital adjustments and customary
expenses (the "Transaction").
Logibec is one of Canada's 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 Canada's largest pension funds.
The Transaction is expected to close in December 2013, 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 Kelowna, BC and Winnipeg, MB that are related
to the EMS Division.
Al Hildebrandt, 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 Quebec, 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
Canada's 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 Canada," said Marc P. Brunet, 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 Canada and the United States.
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.
Art Mesher, 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 Jerry Diener, 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 $19 million of our current run rate of $25
million 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."
Paradigm Capital Inc. and Aeson Leeds Inc. are acting as financial
advisors, and Clark Wilson LLP is acting as legal counsel to QHR.
Conference Call to Discuss the Transaction
The Company executives will host a conference call at 2:00 PM EST (11:00
AM PST) Monday, December 9, 2013, 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 Corporation
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 Canada 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.
About Logibec Groupe Informatique Ltée
Logibec, a platform company of OMERS Private Equity Inc., is a leading
Canadian healthcare IT Company, which offers clients unparalleled
solutions and industry expertise to optimize processes in all domains
of the healthcare industry. Logibec has been recognized and ranked in
the Branham 300 Industry survey for the last 4 years as No. 1 Pure-Play
Healthcare ICT Companies in Canada. In the U.S., Logibec's wholly owned
subsidiary, MDI Achieve, Inc., is a leader in the long-term-care market
with MatrixCare, the fastest growing, cloud-based EHR solution for the
eldercare market. With 30 years dedicated to the ever-evolving North
American Healthcare market, Logibec's software and information systems
are aligned with current and future needs of the health and social
services sector. For further information visit: www.logibec.com
About OMERS Private Equity Inc.
OPE is the private equity investment arm of the OMERS Worldwide group of
companies. OPE manages the private equity activities of the OMERS
pension plan and has over CAD$6 billion of investments under
management. The group's investment strategy includes the active
ownership of businesses in North America and Europe. OPE is
headquartered in Toronto, Canada, with offices in London and New York.
For further information visit: www.omerspe.com.
About OMERS
OMERS is one of Canada's largest pension funds with over CAD$60 billion
in net assets. It provides first-class pension administration and
innovative products and services to almost 430,000 members.
Approximately one in every 20 employees working in the province of
Ontario is an OMERS member. Through the OMERS Worldwide brand, our team
of investment professionals uses a direct drive, active management
investment strategy to invest in public and private market assets,
including publicly-traded equities, fixed-income, infrastructure,
private equity and real estate. For more information, please visit
www.omers.com, or www.omersworldwide.com.
Legal Notice Regarding Forward Looking Statements
This news release contains "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 our expectation
to sell the EMS division for $20,000,000; that customers of EMS will
have a seamless transition; that we will make acquisitions in the EMR
and RCM markets and invest in continued technology research and
development for SaaS applications; that we can expand revenue and
earnings growth; that we can achieve scalable growth and improved
margins; and that we can become a leader in new markets in our fields.
Risks that may prevent or delay the forward looking statements from
coming to fruition include that we may not complete our sale of the EMS
division as a result of conditions not being fulfilled or other
reasons; we may not offer products or services that are acceptable to
industry regulators or customers; competitors may offer better or
cheaper products; our products may not remain competitive in marketing
our products; changing regulatory requirements may prevent our products
from being sold as expected; we may not be able to attract or retain
key personnel; our technology may become obsolete; orders could be
cancelled or delayed and market factors may increase our costs more
than expected. 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 our 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
