Health Systems Solutions has signed a definitive agreement to acquire Emageon in a cash deal worth about $62 million.
Health Systems will pay $2.85 a share for all outstanding shares in the Birmingham, Ala.-based health imaging company, representing a 37% increase over Emageons share price as of market close Oct. 13. Stanford International Bank, Health Systems principal shareholder, is providing $85 million for the deal, with the extra money to be used for working capital and future acquisition efforts, the company said in a news release. The transaction, subject to stockholder approval and customary closing conditions, is expected to close within 120 days, according to a Health Systems spokesman.
The new company will have 400 employees, and Emageons management will continue to operate the business as a unit of Health Systems.
Tampa, Fla.-based Health Systems develops information technology for the industry. -- by Jean DerGurahian