HBO & Co., an Atlanta-based healthcare information systems and services company, announced two acquisition agreements late last month with a total value of nearly $200 million.
Imnet Systems, an Atlanta-based developer of electronic healthcare information and document management systems, will be acquired for about $139 million in common stock. The companies have had a business relationship since January 1996, when Imnet agreed to pay $3 million for exclusive rights as the "private label" offered by HBO & Co. in the information-media management niche.
US Servis, a Somerset, N.J.-based provider of physician-practice and hospital business systems and outsourcing services, will be acquired for $50 million in common stock. The company, which serves 10 healthcare delivery networks, became embroiled last year in a contract dispute with New York City Health and Hospitals Corp. (Dec. 1, 1997, p. 44). The company ultimately settled for $5.4 million in payments in return for agreeing to bow out of its HHC contract.
Both deals are subject to regulatory and shareholder approvals.