If you're a growing Internet company, a customer base and a recognized name are what you spend your days and your dollars trying to grab. Unless you can hook up with someone who already has those things.
That's what MediVation said it did last week when it agreed to be acquired by McKesson HBOC, the San Francisco-based healthcare information systems vendor and drug distributor. Terms of the sale, which is expected to close as early as the end of this month, weren't released.
MediVation, a privately owned for-profit company based in Needham, Mass., sells an Internet-based resource to physician practices that enables doctors to communicate online with their patients.
The 3-year-old MediVation declined to disclose any financial information about itself.
The acquisition will bring those products to McKesson HBOC's new Internet unit, iMcKesson, which was launched less than a month ago to move healthcare customers to the Internet for clinical and business operations.
"From a financial perspective, (the acquisition) makes us part of a much stronger, much larger team," said Michael Cataldo, MediVation's president and chief executive officer.
Under the proposed acquisition agreement, Cataldo will join iMcKesson as vice president of the unit's Provider Solutions Group.
MediVation's services enable physicians to communicate with and deliver personalized information to their patients, such as pre- and post-visit instructions and other pertinent medical or pharmaceutical information. Healthcare consumers are increasingly using the World Wide Web but prefer to interact with their own physician when they do, Cataldo said.
Information stored in practice-management systems can be linked with the information exchanged through MediVation, according to Cataldo. The plan is to further link that information with iMcKesson's existing Web-based services, such as distributing lab results and processing medical claims.
"We see tremendous synergies between MediVation's technology and business philosophy and our own," David Mahoney, CEO of iMcKesson, said in a written statement.
Some 20,000 patients are currently signed up through their own physician's office to use MediVation's Internet services, which employ encryption technology to protect sensitive data as it travels over the Internet.