Cedara Software Corp. this week completed its acquisition of eMed Technologies Corp. of Burlington, Mass.
eMed is now a wholly-owned subsidiary of Cedara. eMed's installed base of hospital and imaging centers across the United States now has access to Cedara's clinical applications and image management technologies. At the same time, Cedara said it will use its extensive global channel to promote eMed systems worldwide, such as eMed's recently debuted Matrix PACS designed with the Microsoft .NET smart client architecture.
Cedara paid $48 million in cash for eMed. Cedara said it financed the net cash disbursement of approximately $29 million to complete the transaction with approximately $14.5 million from its own cash reserves and approximately $14.5 million from its new credit facility with the Royal Bank of Canada (RBC). Cedara this week entered into a $23.5 million credit facility with the RBC where Cedara has become the newest client of RBC's Knowledge Based Industries Group.
Under the credit facility, RBC's Knowledge Based Industries Group has provided a term facility of up to $17.8 million to allow Cedara to finance part of the previously announced acquisition of all of the issued and outstanding shares of eMed. The credit facility also includes a revolving credit facility, a corporate VISA facility and a foreign exchange credit facility in an aggregate amount of up to $5.7 million of purposes of financing Cedara's general operating requirements, office and travel expenses, and facilitating foreign exchange transactions, Cedara said.
"I am delighted that we have completed the transaction to bring eMed and Cedara together," said Abe Schwartz, Cedara President & CEO. "We can now concentrate on the job of growing the combined business and maximizing value for our customers, employees and investors,"
"The combination of Cedara and eMed significantly expands our overall presence and impact in the growing medical industry," said Mark Smith, eMed CEO. "The transaction enables each of us to leverage our considerable competitive strengths, ushering in a new era of growth for our business." Smith has agreed to stay on as CEO of eMed.
For the year ended December 31, 2003, eMed posted approximately $24million in revenue, $3 million in net income and $5 million in cash flow from operating activities. On closing, eMed's balance sheet included cash of approximately $19 million and no debt.