Emageon Deal Off

The Tampa Bay Business Journal reports that the HSS/Emageon merger is a no-go.

A proposed merger between Health Systems Solutions Inc. and Emageon Inc. fell through after Health Systems could not provide the money needed to close the deal.

Emageon (NASDAQ: EMAG), a health care information technology firm headquartered in Birmingham, Ala., said in a release that it terminated its merger agreement with Health Systems due to the company’s failure to receive all necessary financing on or before the designated closing date of Feb. 11.

Emageon said it received $9 million that had been placed in escrow with The Bank of New York Mellon by Health Systems in connection with the proposed merger.

Emageon said it terminated the agreement one day after Health Systems announced in its own release that funding from Stanford International Bank Limited for the acquisition would not be available and that no other funding for the acquisition was available.

At least Emageon got the $9 mil. There was some speculation that the money hadn’t even been properly escrowed, but that’s apparently not the case.

So who wants to buy a PACS company?

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4 responses to “Emageon Deal Off

  1. It’s a shame that the customers using Emageon are not looking for back-up and/or replacement as fast as they should….some large multi hospital systems have a large installed base but seem to beleive that eveything will be “ok”…just like we all thought the stock market will go back up quickly….no wonder some of these hospitals are going under…..must have management from the financial or auto industry huh?

  2. It’s amazing that hospital radiology directors are so far in denial that they are not even looking into alternative options…..how STUPID are they….just goes to support the notion that most of these managers were techs that we promoted into management positions with limited business sense….poor patients and physicans that have to deal with all this incompetience….

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