MedPlus buys product line from First Consulting Group

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MedPlus, a provider of information management products to healthcare providers, has purchased the FirstGateways business from First Consulting Group (FCG).

The sale, effective on Sept. 12, enables the collection, aggregation and presentation of patient-centric data to clinicians on a real-time and secure basis, MedPlus of Mason, Ohio in exchange for a cash payment, according to the Alpharetta-Ga.-based FCG.

Under the terms of the agreement, FCG may earn additional cash consideration if certain total contract value thresholds are met during an earn-out period that runs through December 2009 and for contracts executed on or before March 31, 2010.

The recent FirstGateways contract with NYCLIX, the New York City-based regional health information organization, is among the assets MedPlus as a part of the sale.

FCG’s FirstGateways software segment incurred losses of approximately $500,000 and $750,000 in the first and second quarters of fiscal year 2007, respectively.
The terms of the asset purchase agreement include customary representations, warranties, covenants and indemnification provisions.