A Medical Device Daily
Merge Technologies (Milwaukee), doing business as Merge eFilm, reported the closing of its acquisition of AccuImage Diagnostics (San Francisco), a company developing software for advanced visualization, analysis and management of medical imaging data from medical imaging modalities.
The transaction was priced at $6 million in cash.
Richard Linden, Merge eFilm's president and CEO, said, “The clinical depth and capabilities of AccuImage will strengthen the Merge eFilm Fusion RIS/PACS value proposition to both our end user and OEM/VAR customers. When integrated into our Fusion RIS/PACS, these advanced visualization tools will be accessible throughout our customers' healthcare enterprise, bringing them a competitive advantage and new sources of revenue.“
Linden added that the company's OEM/VAR customers will be able to incorporate AccuImage software applications into their solutions.
Merge eFilm said it will maintain AccuImage's San Francisco office.
The AccuImage software portfolio is used by radiologists and specialty physicians such as cardiologists, gastroenterologists, pulmonologists and orthopedic surgeons. AccuImage's visualization tools released or in development include advanced 3-D/4-D visualization, calcium scoring, virtual colonoscopy, CT angiography, lung nodule detection, visceral fat measurement and image stitching.
Merge eFilm is a global healthcare software and services company.
Integrated Healthcare Holdings (IHH; Costa Mesa, California) reported that it has restructured the agreements and financing arrangements related to its pending acquisition of four Orange County, California, hospitals from subsidiaries of Tenet Healthcare (Dallas).
The original agreement, disclosed last September, involved a $70 million purchase and a targeted closing date in 2004. The transaction now is expected to close no later than Feb. 28, pending approval and receipt of licenses from the California Department of Health Services.
IHH's outside financing arrangements also have been restructured so that the primary equity financing will be provided by Orange County Physicians Investment Network (OC-PIN).
OC-PIN will provide most of the financing that was originally agreed to be provided by Dr. Kali Chaudhuri. The financing agreements with Chaudhuri were rescinded, and Chaudhuri and his associates now will receive warrants to acquire up to 24.9% of the common stock of the company beginning two years after closing, subject to approval of the California Department of Health Services.
In addition, OC-PIN and Chaudhuri will form a new real estate holding company to own and operate certain real estate assets underlying the hospitals, with Chaudhuri owning no more than 49% of the company. IHH and the real estate holding company expect to complete in the next few weeks their borrowing arrangements for the balance of the purchase price and a working capital line of credit for IHH.
“The restructured deal accelerates our goal of providing an opportunity for the medical community to make a substantial investment in the hospitals in which they provide service,“ said IHH President Larry Anderson. “The restructured deal accelerates that goal and brings a significant number of doctors into the deal from day one.“
The four hospitals to be acquired are 282-bed Western Medical Center (Santa Ana); 188-bed Western Medical Center (Anaheim); 114-bed Chapman Medical Center (Orange) and 178-bed Coastal Communities Hospital (Santa Ana). Together these hospitals represent 12.1% of all hospital beds in Orange County.
After closing the transaction, IHH plans to use its new financing resources to upgrade and enhance the existing facilities. IHH also intends to hire substantially all current employees and management staff of the hospitals.
Dan Brothman, currently CEO of Western Medical Center, will join IHH as senior vice president-operations, overseeing all four hospitals.
In other dealmaking activity:
Lynx Therapeutics (Hayward, California) reported that it would hold its 2004 annual meeting of stockholders on March 1 at its offices in Hayward, beginning at 11 a.m. PST. The proposals for consideration by the shareholders include approval of the previously disclosed business combination with Solexa (Cambridge, UK).
Lynx stockholders of record at the close of business on Jan. 3 are entitled to vote at the annual meeting.
Lynx and Solexa announced the signing of a definitive agreement providing for the combination of the two companies last September.
Lynx is a leader in the development and application of genomic analysis solutions.