Is this HIStalk or Reddit? Hard to tell the difference with the comments being posted.
Emageon To Be Acquired by Health Systems Solutions, Inc.
Health Systems Solutions, Inc. of New York, NY announced Monday evening that it will acquire medical imaging vendor Emageon of Birmingham, AL for $2.85 per share or $62 million in cash, a 37% premium to its share price at Monday’s close.
HSS, traded on the OTC bulletin board, has a market cap of $20 million. Chairman and CEO Stanley Vashovsky was quoted as saying, "This transaction will offer us the ability to leverage Emageon’s best-in-market products as well as broaden and strengthen our management team with some of the industry’s most respected leaders. Our ability to bring together innovators in healthcare technology and unleash their entrepreneurial and creative talents will result in cutting-edge solutions that will improve clinical care and significantly improve customer profitability."
The company announced that it will seek Nasdaq listing following closing of the deal, which is subject to shareholder approval.
Emageon settled its proxy fight with Oliver Press Partners LLC in June, giving the investment manager three seats on its board. It announced evaluation of strategic alternatives at that time, including sale of the company. The company’s share price has dropped by 80% in the past year.
Well, we knew there would be a sale, but that’s truly bargain basement. This is a fantastic move on the part of HSS, which will get itself off the OTC BB and get some attention (starting on HIStalk tonight). If they can nurse Emageon back to health, then they’ve done very well indeed. Congratulations to HSS. To EMAG shareholders, not so much.