Cegedim, a global technology services company, said it completed a deal to acquire electronic health-record system provider Pulse Systems. The acquisition's total cost, excluding a capital increase and including a portion contingent upon meeting growth targets over the next two years, will not exceed $58 million, according to a news release from Cegedim.
The deal represents Paris-based Cegedim's first foray into the U.S. EHR market. "Pulse provides Cegedim an optimal entry and platform into the rapidly growing U.S. healthcare computerization market,” Alain Missoffe, chairman of the Cegedim Healthcare Software business unit, said in the news release. Cegedim also cited the American Recovery and Reinvestment Act of 2009 as offering "considerable opportunities" for health IT companies in the U.S.
In addition to its EHR products, Wichita, Kansas-based Pulse Systems provides practice management and e-prescribing systems and revenue-cycle management services for office-based physicians. A Pulse EHR system and child-health module have been tested and certified by the Certification Commission for Health Information Technology.
Cegedim will invest $13.5 million in Pulse for research, development, sales and marketing, according to the news release. The deal, while finalized July 27, was announced Wednesday.