Picis has entered into a definitive agreement to acquire Lynx Medical Systems of Bellevue, Wash. Lynx provides revenue cycle management solutions to hospital emergency departments and Picis provides the market-leading clinical information system for emergency care.
“From every perspective, short and long term, strategically, financially, and operationally, this acquisition represents another major milestone for Picis,” said Todd Cozzens, Picis president and CEO. “We are not only acquiring complementary technology and services, but also a proven management team, product development expertise and a sales force with a demonstrable track record of success operating in the same markets as ours.”
The company also signed an agreement with Goldman, Sachs & Co. for a private placement comprised of convertible preferred stock and senior debt to assist in funding the acquisition. “When the opportunity to acquire Lynx Medical Systems presented itself, it caused us to reevaluate the timing of our planned initial public offering (IPO). It was most gratifying to have Goldman Sachs provide a sound and strategic alternative financial plan,” said Cozzens.
A portion of the proceeds from the Goldman Sachs financing will be allocated for the acquisition of Lyn Medical Systems and the rest will be deployed to retire existing debt and provide additional working capital. The transaction will be final subject to customary closing conditions and timing.