Jan 8 2010
Lawson Software (Nasdaq: LWSN) today announced that it has agreed to
acquire Healthvision Solutions, Inc. (“Healthvision”), through the
acquisition of privately held Quovadx Holdings, Inc. (“Quovadx”), its
parent holding company. Healthvision is a Dallas-based company providing
integration and application technology and related services to hospitals
and large healthcare organizations. The all-cash transaction of $160
million is subject to regulatory approvals and expected to close in
January 2010.
“With Healthvision, we see an opportunity for growth with the system
integration technology used within hospitals and used to build HIEs”
Healthvision’s market-leading Cloverleaf integration technology connects
the disparate software applications and technologies used throughout
healthcare organizations, enabling data to flow smoothly to healthcare
professionals wherever they are and whenever they need it. Without
Healthvision solutions, most healthcare providers struggle with
cumbersome, manual and time-intensive IT environments, adding to the
cost of healthcare and affecting the quality of patient care. The use of
Healthvision solutions helps transform what is typically a multitude of
complex interfaces into an automated and efficient environment.
Combined with Lawson’s leading position in providing enterprise software
to healthcare organizations, the acquisition of Healthvision will enable
Lawson to connect multiple source systems and provide healthcare
providers with quick access to clinical, financial and operational
information reliably and securely, regardless of the source system. With
this expanded ability, Lawson can help hospitals and healthcare
organizations protect their existing technology investments, while
adapting to future compliance and interoperability requirements driven
by healthcare IT reform.
“Reducing healthcare costs is a priority for everyone,” said Harry
Debes, Lawson president and chief executive officer. “Healthvision’s
solutions address that challenge by giving our healthcare customers
access to financial, operational and clinical information across their
enterprise. When their systems are connected and data can flow between
systems, substantial benefits result. Clinicians can better coordinate
patient care, operational processes become more efficient, and revenue
activities are processed smoothly and at a lower cost.”
Headquartered in Dallas, Healthvision began in 1989 and today has nearly
300 employees located in the United States, Canada, the United Kingdom
and China. Its Cloverleaf product is a recognized leader and used by 33
percent of North American hospitals and 40 percent of large integrated
delivery networks. Healthvision has 800 customers, including 200 joint
customers with Lawson, and its products are used in more than 3,000
healthcare facilities around the world.
Healthvision has three product lines. Healthcare organizations use
Healthvision’s Cloverleaf integration technology to connect their
software applications within a hospital. Healthvision’s Health
Information Exchange (HIE) platform links an entire healthcare network
consisting of hospitals, clinics, laboratories, pharmacies and other
stakeholders like payers, partners and vendors. This is an emerging
growth market, with U.S. government stimulus funds promoting the
creation of HIEs. Healthvision also targets the Canadian healthcare
market with its MediSuite products, an integrated suite of provider
applications for laboratories, electronic health records, patient
management, clinical department systems and public health and community
care.
“With Healthvision, we see an opportunity for growth with the system
integration technology used within hospitals and used to build HIEs,”
said Jim Catalino, Lawson senior vice president and general manager of
Lawson Healthcare. “Most healthcare organizations have added or acquired
multiple IT systems throughout their lives and want to get the most out
of these assets. Taking on this integration task themselves requires
building, monitoring and maintaining their own interfaces. That’s
expensive, time-consuming and difficult and results in large
organizations maintaining thousands of interfaces. Smaller healthcare
organizations usually don’t have the money or IT resources to even do
this task so their systems can’t talk to one another. Big or small,
these IT costs and disparate systems add to the big issues healthcare
faces in terms of efficiency, affordability and patient care.
Healthvision eliminates the need for homegrown interfaces and the cost
of those interfaces and allows healthcare CIOs to allocate IT resources
to more strategic needs.”
“Healthvision customers get the strength, commitment and leadership of
Lawson not only to the healthcare industry but also to the entire suite
of Healthvision products,” said Carolyn Jolley, Healthvision senior vice
president of client services. “Lawson customers can now address their
integration challenges, and on the strategic level, this acquisition
also gives Lawson and Healthvision’s customers the solid system
integration and application foundation to create the exchange of
healthcare information demanded by both U.S. healthcare reform and the
Canadian government.”
In the first 12 months after closing, Healthvision is expected to add
$60 million to $70 million in revenues and $0.06 to $0.07 of net
earnings per diluted share before amortization of acquired intangibles,
purchase accounting impact on revenues, integration and transaction
costs. Subject to final determination after the close of the
transaction, these costs are estimated to be $16 million to $22 million
in the first year. Approximately 60 percent of Healthvision’s annual
revenues are maintenance or subscription fees.
http://www.lawson.com/