Imnet Systems, an Atlanta-based developer of electronic document and imaging management systems, has agreed to pay $3 million for HBO & Co. to market and distribute Imnet's products.
As part of the deal, Imnet also agreed to assume the customer support responsibilities for an electronic document management system, called First Perspective, that HBO & Co. acquired in its June 1995 acquisition of First Data Corp.'s health systems group.
And Imnet pledged to assume all customer expenses of converting from First Perspective to its own line of document imaging software, said Paul Collins, Imnet senior vice president of marketing.
Twelve healthcare organizations run the First Perspective system, and HBO & Co. signed a contract for a 13th system just as the negotiations with Imnet were under way in late December and early January, said James Gilbert, HBO & Co.'s senior vice president.
Imnet's deal will buy it valuable feedback from those customers to determine their business needs and what made them want the First Perspective product, which has a "superb" system of displaying data on a computer screen and making the system easy to use, Gilbert said.
The price of climbing aboard HBO & Co.'s healthcare software ship was worth it because of the length of the contract-seven years-and because it opens up an exclusive selling opportunity for Imnet's full line of storage and retrieval products to HBO & Co.'s more than 2,000 customers, Collins said. Atlanta-based HBO & Co. will sell the products under its own name.
That squares with Imnet's mission to "become the de facto standard in healthcare" for information systems that capture, index, store and retrieve information, Collins said. The company also has distribution agreements with other vendors developing comprehensive lineups of healthcare information systems: Cerner Corp., Phamis, IDX Systems Corp. and Integrated Medical Systems.
Imnet went public in August 1995, and its stock on the NASDAQ exchange has traded as low as $14.50 and as high as $29.75. On Jan. 17, the day after the announcement, it closed at $24, up $2.