First Consulting Group, Inc., Long Beach, Calif., announced its intent to acquire consulting, network management and integration services company, Integrated Systems Consulting Group, Inc., Wayne, Pa., for approximately $124 million in First Consulting common stock. Integrated Systems shareholders will receive .77 shares of First Consulting stock for each share of Integrated Systems common stock. First Consulting will use Integrated Systems’ strengths in the pharmaceutical and biotechnology industries to complement its consulting and information management services to healthcare payors and providers. The combined company will employ 1,300 people and have annual revenues near $180 million.
MEDICAL MANAGER ADDRESSES Y2K PROBLEM
Amid negative customer feedback, including a pending lawsuit, Medical Manager Corp., Tampa, Fla., announced it will release a patch for version 8, first released in November 1993, of The Medical Manager software that will make the practice management information system year 2000 compliant. The patch will be available free to version 8 users by the end of 1998. Plaintiffs in the class action suit claim that Medical Manager Corp. intended to profit by forcing its users to upgrade to version 9, released in November 1997, knowing that it was the only year 2000 compliant version available. The lawsuit remains pending--even with the announcement of the patch--on behalf of those companies that have already upgraded to version 9. Medical Manager Corp. officials say the lawsuit is without merit and that the company will vigorously defend itself.
REY & REY DROPS OUT OF HEALTHCARE
Reynolds & Reynolds, Dayton, Ohio, is exiting healthcare IT by selling its Healthcare Systems Division for $40 million in cash and $10 million in convertible subordinated five-year notes to specialty practice management information systems company, InfoCure Corp., Atlanta. Reynolds & Reynolds’ primary healthcare assets surround its R2000 practice management information system. Company officials said that the healthcare business hindered growth objectives for the company, and that the firm wanted to focus efforts on its core business of information systems for the automotive industry. InfoCure will double its practice management business with the acquisition.
ENVOY FACES LEGAL TROUBLE
Envoy Corp., Nashville, Tenn., is the target of several class action lawsuits on behalf of company shareholders. The suits claim that the company committed securities fraud by issuing misleading financial statements and press releases, thereby falsely inflating its operating results and share value. The company also is reportedly being investigated by the Securities and Exchange Commission. Envoy’s stock toppled from more that $55 per share in June to a low of $17.25 in September.
SAS EXPANDS BUSINESS
SAS Institute, Cary, N.C., has created a new business unit called SAS PharmaHealth Technologies, to manage clinical research data. Its key strategies will be to marry clinical data warehousing and standardized reporting with best practices such as Total Change Management, a process for activating organizational change. PharmaHealth’s first product, the SAS PharmaTechnology Process, will be available in the fourth quarter of 1998.
CITATION TO MERGE WITH EUROPEAN CO.
French PACS company Medasys Digital Systems and Citation Computer Systems, Inc., St. Louis, have agreed to terms of a merger. Citation shareholders will exchange one share for each Medasys share. Citation officials say the deal will better position the company to market its clinical information system overseas. The new company, called Medasys International, will be based in St. Louis. Citation’s chairman and CEO, Robert Cooper, will become chairman of the new company, and Medasys’ chairman and CEO, Jean-Marie Lucani, will become CEO.
VISTEON CHANGES NAME
Visteon Corp., Maitland, Fla., has changed its name to Avio Corp. Officials say the change was made to give the company a stronger trademark in the industry. Avio develops physician practice management information systems.
IDX ACQUIRES EDIX
IDX Systems Corp., Burlington, Vt., announced it will acquire EDiX Corp., a San Diego-based provider of medical transcription outsourcing services, for approximately $20 million in IDX common stock and the assumption of debt. The company will operate as EDiX, a division of IDX Systems Corp.
QUADRAMED BUYS COMPETITOR
QuadraMed Corp., Richmond, Calif., announced it has acquired a coding software competitor, CodeMaster Corp. of Santa Cruz, Calif. for approximately $11.5 million in QuadraMed common stock. The company will integrate CodeMaster’s InfoMaster product with its WinCODER software.
MEDIWARE BUYS INFORMEDICS
Mediware Information Systems, Inc., Melville, N.Y., announced it has acquired laboratory information systems company, Informedics, Inc., Lake Oswego, Ore. Informedics shareholders will exchange 6.3 shares of Informedics common stock for one share of Mediware common stock. Mediware develops clinical, blood bank, pharmacy and operating room software.
