A Medical Device Daily

Harmony Information Systems (Reston, Virginia), a provider of software solutions for the health and human services (HHS) sector, reported that it has raised Series B equity and debt financing totaling $28 million.

The round was led by existing Harmony investors JMI Equity and Updata Partners, with ORIX Venture Finance and Comerica Bank also participating as new investors.

Harmony said it will use the funding to accelerate the expansion of its sales and marketing team, develop new on-demand and on-premise software solutions for public and private HHS organizations, increase its consulting service offerings and address new and existing growth opportunities across the broad range of service programs in the HHS sector. Additionally, it will continue to provide support to its existing customer base in 43 states, the District of Columbia, Puerto Rico and Canada.

“This funding further validates our model for development and delivery of world-class solutions that enable case management professionals to meet the needs of clients, while optimizing care efficiency and quality,” said Tonya Harmon, CEO and founder of Harmony.

In connection with the Series B funding, John Burton, managing general partner of Updata, will join the company’s board.

Harmony offers the HHS profession an integrated suite of software solutions as well as comprehensive education and consulting services. Its web-based information management framework is designed for organizations-public and private-that administer an array of programs or services. Harmony’s enterprise approach draws critical data from disparate data sources to create a single, fully integrated, consistent, and comprehensive client view.

Ophthalmic Imaging Systems (OIS; Sacramento, California), a digital imaging company, reported that it issued $2.75 million of 6.5% convertible notes due 2010 in a transaction led by The Tail Wind Fund.

OIS said it expects to use the net proceeds from the offering of the notes to fund potential future acquisitions.

Under the terms of the notes, the investors have the right by 2010 to convert the notes into OIS common stock at a fixed conversion price equal to a 5% premium to the volume weighted average price (VWAP) for the trailing 12 days of trading as of Oct. 29. In addition, the company issued 616,671 five year warrants with an exercise price equal to a 20% premium to the VWAP for the trailing 12 days of trading as of Oct. 29, equal to $1.87.

“This offering provides OIS with the capital necessary to aggressively seek out potential acquisitions that will expand upon our offerings and help us execute our business strategy,” said Gil Allon, CEO of OIS. “We believe OIS has a tremendous infrastructure in place from which to expand our business. Once our intended merge with MediVision Medical Imaging [Yokneam, Israel] is complete, we will be able to rapidly implement our strategic growth plan.”

OIS, a majority-owned subsidiary of MediVision, is a provider of digital imaging systems and informatics solutions for the eye care market.