Publicly traded healthcare information technology consultancy First Consulting Group, Long Beach, Calif., has sold the assets of its data-mining operations, FirstGateways, to MedPlus, Mason, Ohio, a developer of electronic health records, portals and other IT software and services for physicians. MedPlus is a wholly owned subsidiary of publicly traded laboratory giant Quest Diagnostics, Lyndhurst, N.J.
FirstGateways enables the collection, aggregation and presentation of patient-centric data to clinicians in real-time, according to a First Consulting news release. The business unit represents substantially all of the assets of the company's software products division.
First Consulting expects to net about $11 million from the cash sale, $8 million after taxes, the company said, but the sale could produce additional revenue for First Consulting if certain total contract value thresholds are met.
The IT consultant also can receive compensation for providing sales leads for FirstGateways products to MedPlus, the statement said. The First Consulting software products segment lost approximately $500,000 in the first quarter of 2007 and $750,000 in the second quarter this year, the company said. -- by Joseph Conn