Global Healthcare Exchange and Neoforma, two large electronic marketplaces for hospital supplies, will merge into a single company. GHX, Westminster, Colo., founded by major supply manufacturers in 2000, said it entered into a definitive agreement with Neoforma, San Jose, Calif., a competing exchange established in 1996 and partly owned by hospital alliances VHA and University HealthSystem Consortium. GHX will pay $10 per share for Neoforma stock and add VHA and UHC as partial owners. The total value of the deal wasn't disclosed. It is expected to close in early 2006, pending regulatory and stockholder approval. VHA, which owns 41.6% of Neoforma, will receive $20 million and an 11.6% stake in GHX. UHC, which owns 10.3% of Neoforma, will receive about $5 million and a 2.9% stake in GHX. Neoforma has been exploring potential partnerships since December 2004. The company is about halfway through a 10-year exclusive contract with Novation, the joint group purchasing organization of VHA and UHC. It has an annual transaction volume of about $13 billion. GHX has projected $8 billion in transactions in 2005. -- by Joseph Mantone
Hospital supply e-markets GHX, Neoforma to merge
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.