Emageon, a developer of enterprise medical IT systems for hospitals and health care networks, reported that it has been informed by Health Systems Solutions (HSS) that it does not expect that Stanford International Bank will provide the funding necessary to consummate the parties' planned merger transaction.
The deal was scheduled to close today, Feb. 11, in accordance with the terms of the parties' amended merger agreement.
The Birmingham, Ala.-based Emageon said it "is evaluating its options in response to this development."
At the time the Feb. 11 extension was established as the new closing date, Stan Vashovsky, CEO and board chairman of the New York City-based HSS, said the extension would "allow us additional time to complete our integration plan for our technologies. As a result, we will be in a better position to immediately serve the market upon closing."
In October 2008, HHS signed a definitive agreement to acquire 100 percent of Emageon's stock in an all cash transaction of approximately $62 million.