Medical guidelines developer EBM Solutions, spawned by Vanderbilt University Medical Center, will become part of HealthGate Data Corp., an electronic healthcare information publisher in Burlington, Mass.
HealthGate today announced it would acquire privately held EBM Solutions for 752,048 shares of its stock--worth $376,024, based on HealthGates's Thursday closing price of 50 cents--and assume unspecified liabilities. Certain unspecified EBM Solutions shareholders also have agreed to purchase 333,333 shares at $1.20 each--just short of $400,000--according to a HealthGate statement.
HealthGate shares were up 10%, to 55 cents, at midday Friday, though sellers were asking as much as 70 cents, according to Over-the-Counter Bulletin Board data.
The company says the merger will allow HealthGate to provide professional information in addition to the patient-centric educational material it currently delivers to more than 700 U.S. hospitals.
"HealthGate's strategic operation of EBM Solutions will greatly benefit our customers by integrating consumer-focused healthcare content with evidence-based guidelines and best practices for medical professionals," President and CEO Bill Reece says in the statement.
As part of the deal, HealthGate will take over EBM Solutions' existing content-development relationships with Vanderbilt, Duke University Medical Center, Emory University and Oregon Health and Science University. It also will offer its consumer information to those academic institutions, the company says.
Harry Jacobson, M.D., chairman of EBM Solutions and vice chancellor of medical affairs at Vanderbilt, has been offered a seat on the HealthGate board. Eric Thraikill, EBM's president and COO, will become COO of HealthGate when the deal closes, likely near the end of October, according to the statement.
Neither was immediately available for comment.
HealthGate says it plans on retaining the EBM Solutions office in Nashville, Tenn.