Northeast Hospital Corp. picked Merge Healthcare Inc.’s (NSDQ:MRGE) medical information and image management systems for its network of hospitals and health centers.
Massachusetts-based NHC will deploy Merge’s Picture Archiving and Communications System and ECM vendor-neutral archive.
"Our clinicians desired a solution that effectively supports their workflow, instead of changing to accommodate the application, and a vendor who could meet both our current and future needs. With Merge, we now have a true partner, and a solution that creates the backbone for a multidisciplinary imaging environment," said NHC Imaging Informatics Manage Dawn Jakab-Cram in prepared remarks.
The selection process began in 2009 and involved representatives from radiology, information systems, surgery, emergency services, contracting, and risk management departments, according to Merge.
"Customers need to make purchases now that give them the proper infrastructure and relationship to efficiently move toward Meaningful Use, as created through the American Recovery and Reinvestment Act, and future quality initiatives," said Merge CEO Justin Dearborn.
Merge bought out Boston-based maker of radiology and cardiology imaging tools Amicas Inc. (formerly NSDQ:AMCS) in a $6.05-a-share buyout deal that closed April 28, according to Chicago-based Merge. The company beat a $5.35-a-share bid by Thoma Bravo LLC, a private equity firm in Chicago.
Even before trumping Thoma Bravo’s proposed $218 million buyout, Merge was becoming an aggressive deal-maker, spending about $44 million during 2009 to by four other companies as well as striking a strategic accords with Merrick Healthcare Solutions Inc. as part of efforts to expand its competitive offerings.
Merrick — through its corporate parent, Merrick Ventures LLC — increasingly has taken a much more prominent role in Merge’s development. The Chicago-based holding company now owns a 37.8 percent stake in West Allis, Wisc.-based Merge, and concurrent with a $20 million investment, pressed for a June 2008 reorganization that took out four of Merge’s top managers, including its CEO, along with 60 other employees.
To finance the Amicas acquisition, Merge secured $200 million in debt funding through Morgan Stanley Senior Funding Inc. and earlier this month pulled in $41.75 million through the sale of common and preferred stock to private investors, including a $250,000 stake purchased by NorthPointe Capital LLC of Troy, Mich.
