Logibec Groupe Informatique Ltd.
TSX : LGI

Logibec Groupe Informatique Ltd.

November 19, 2007 17:01 ET

Logibec Acquires Achieve Healthcare Technologies and Doubles the Size of its American Activities

MONTREAL, QUEBEC--(Marketwire - Nov. 19, 2007) - Logibec Groupe Informatique Ltd. (TSX:LGI) announced today that its wholly-owned subsidiary MDI Technologies, Inc. ("MDI"), acquired the assets and business activities of Achieve Healthcare Technologies L.P. ("Achieve"). Achieve develops, markets and supports clinical and administrative software designed specifically for the elder care market in the United States.

Founded in 1994 and based in Minneapolis, Achieve serves over 2,600 facilities and, prior to this transaction, was one of MDI's main competitors. Following this acquisition, MDI becomes the leading software provider to the elder care market in the United States with a customer base of approximately 6,000 facilities.

The purchase price is set at US$34.0 million of which US$20.0 million was paid at closing. The balance of purchase price of US$14.0 million bears interest and will be paid in three installments of US$4.0 million, US$4.0 million and US$6.0 million on June 30, 2008, 2009 and 2010.

This acquisition is also financed by the Company's cash on hand and by an amendment to its existing credit facilities with National Bank of Canada and ScotiaBank, which sets the total of these credit facilities at CA$24.0 million.

Achieve's current contractual agreements should contribute approximately US$14.0 million to the Company's recurring revenue during the fiscal year 2008.

ABOUT LOGIBEC

Logibec is among the ten largest Canadian companies specializing in the development, marketing, implementation and support of information systems for the health and social services sector. Logibec serves over 200 clients throughout Quebec and the rest of Canada. Through its wholly-owned subsidiary MDI Technologies, Inc., Logibec also serves 3,500 senior living communities and long-term care facilities throughout the United States. These services are delivered by an experienced team of some 275 employees. The Company has its head office in Montreal as well as offices in Quebec City, Edmonton, St. Louis, Missouri, Smithfield, Virginia and Tampa, Florida.

The TSX Venture accepts no responsibility for the truth or accuracy of this press release.

Contact Information

  • Logibec Groupe Informatique Ltd.
    Claude Roy
    President and Chief Executive Officer
    514-766-0134
    or
    Logibec Groupe Informatique Ltd.
    Marc P. Brunet
    Chief Financial Officer
    514-762-3833