Further Diversifying Operations and Enhancing the Healthcare IT Segment
WESTBURY, NY / ACCESSWIRE / June 1, 2015 / Vasomedical, Inc. ("Vasomedical") (OTCBB: VASO) today announced the acquisition of all assets of NetWolves, LLC and affiliates (collectively "NetWolves") on May 29, 2015.
"The NetWolves acquisition is extremely important to the future success of Vasomedical, both strategically and operationally, as it immediately eliminates our prior need to build a comprehensive technology infrastructure for our recently launched healthcare IT business. At the same time, it further expands our business into network services especially for the customers in healthcare provision, where reliable, high-fidelity and secure network connectivity is in high demand," stated Dr. Jun Ma, President and Chief Executive Officer of Vasomedical, Inc. "More significantly, it also provides us with the platform for huge potential growth in the rapidly expanding telemedicine and connected healthcare markets."
"NetWolves, as a stand-alone private entity, has been a growing and profitable business for over six years. As it will be integrated into our healthcare IT business to provide implementation, training and support services to our healthcare IT value-added-resale operation, its technical expertise in IT infrastructure and network connectivity readily complements our market presence and customer relations in the healthcare industry. It also presents us with significant cross-selling and up-selling opportunities for its proprietary managed network services to our existing entrenched nationwide customer base in the diagnostic imaging business. We are very excited by the acquisition and are even more optimistic about the future of our new healthcare IT segment now that we have established a solid technical and customer foundation," concluded Dr. Ma.
NetWolves, LLC, a Florida based limited liability company, and its affiliates have been engaged in managed network services with an extensive, proprietary service platform to a broad base of customers - predominantly domestically based, however supporting their needs globally as well - including many Fortune 500 corporations. Substantially all of its customers are under multi-year agreements which provide us with a recurring revenue model to complement our existing operations. Fiscal 2013 and 2014 revenues were approximately $28 million and $30 million, respectively, and adjusted operating income was approximately $1.2 million and $1.4 million, respectively. Vasomedical completed the acquisition of all NetWolves assets on May 29, 2015, including all proprietary technology and intellectual properties, service provider and customer contracts, licenses, etc., for $18 million in cash and the assumption of certain liabilities, virtually all of which are operations related.
"We are very excited to be part of the Vasomedical team," commented Peter Castle, President and Chief Executive Officer of NetWolves, who is also a director of Vasomedical. "We believe the combined operations are a perfect fit and come at an opportune time for us to potentially be a major participant in the rapidly growing healthcare connectivity market. A number of financial institutions have already expressed interest in assisting us in the rapid expansion of business."
Conference Call Information
The Company will host a conference call on June 10, 2015 at 10:00 a.m. ET to discuss first quarter 2015 financial results as well as the acquisition and integration of NetWolves, featuring remarks by Jun Ma, Ph.D., President and CEO of Vasomedical, Michael Beecher, Chief Financial Officer of Vasomedical and Peter Castle, President of NetWolves, who will continue to manage our new NetWolves subsidiary. To dial into the conference call, please dial 1-877-407-8033 from the U.S. or 1-201-689-8033, internationally. Please call at least five minutes before the scheduled start time. The conference call will also be available via webcast and can be accessed through the Investor Relations section of Vasomedical's website, www.vasomedical.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.
A replay of the conference call will be available approximately two hours after completion of the live conference call at www.vasomedical.com. To access the dial-in replay of the call, which will be available until June 10, 2015, please dial 1-877-660-6853 or 1-201-612-7415. All dial-in participants must use the following code to access the call: 13611267.
About Vasomedical
Vasomedical, Inc. is a diversified medical technology company specializing in the manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products. The Company operates through four wholly owned subsidiaries: Vasomedical Solutions, Inc., Vasomedical Global Corp., Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, and VasoHealthcare IT Corp. Vasomedical Solutions manages and coordinates the design, manufacture and sales of EECP® Therapy systems and other medical equipment operations; Vasomedical Global operates the Company's China-based subsidiaries; VasoHealthcare is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments; and VasoHealthcare IT is a national value added reseller of GE Healthcare IT's Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support.. Additional information is available on the Company's website at www.vasomedical.com.
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this release, words such as "anticipates," "believes," "could," "estimates," "expects," "may," "plans," "potential" and "intends" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the effect of the dramatic changes taking place in the healthcare environment; the impact of competitive procedures and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in the conduct of clinical trials and other product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; uncertainties about the acceptance of a novel therapeutic modality by the medical community; continuation of the GEHC agreement; and the risk factors reported from time to time in the Company's SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contacts:
Michael J. Beecher/Amanda Jiang
Investor Relations
Phone: 516-508-5840
Email:
mbeecher@vasomedical.com / ajiang@vasomedical.com
SOURCE: Vasomedical, Inc.