Mediware Information Systems acquires two software companies

Mediware Information Systems, Inc. (NASDAQ: MEDW) announced today that it has finalized the acquisitions of Healthcare Automation Inc. (HAI) and Advantage Reimbursement Inc. (ARI), which provides software and outsourcing solutions for home health providers.

The two companies were owned by a single ownership group based in Cranston, Rhode Island and Andover, Mass. respectively. As announced on November 24, the purchase included a cash payment of $5.5 million. An additional earnout payment of up to $1.5 million is possible based on an annual performance plan.

"Mediware is focused on a growth strategy that includes developing new products, expanding into adjacent market segments, and through strategic acquisitions," said Thomas Mann, Mediware's president and chief executive officer. "These latest acquisitions broaden our customer base and expand our capabilities in this segment of healthcare."

Home health products and services became a focus for Mediware last year with the acquisition of Hann's On Software (HOS) and the Ascend pharmacy management system. These products help ensure safe and efficient drug therapies in small acute care and outpatient hospitals, as well as home infusion providers and specialty pharmacies. The acquisition of HAI adds complementary technologies for this segment while ARI provides outsource billing and reimbursement services.

Key leaders for each business are being retained, including the group's CEO, Ken Pereira, and other operational leaders. Mr. Pereira will become a Mediware vice president and general manager, leading the Company's new Alternate Care Solutions group.

The acquisitions of HAI and ARI represent the fourth and fifth Mediware acquisitions in 24 months. Mediware's strategy is to acquire sound businesses with products and services in or adjacent to the company's core markets. Prior acquisitions include:

-- November 2007: Integrated Marketing Solutions provided donor recruitment technologies to blood centers. IMS formed the basis for Mediware's Blood Center Technologies product group that provides integrated technology for blood and plasma centers. -- November 2008: Hann's On Software added to existing pharmacy management capabilities with a robust medication management solution targeting smaller healthcare organizations. HOS expanded Mediware into home health technology solutions. -- June 2009: SciHealth added a powerful business intelligence solution used by more than 100 hospitals. The Insight product, which allows hospitals to create performance managing dashboards, launched a new product group for the company as well as enhances the overall usability of Mediware's other software systems.