Nightingale Informatix Corporation
TSX VENTURE : NGH

Nightingale Informatix Corporation

January 12, 2006 13:25 ET

Nightingale to Acquire Integrated Healthware Inc. of Boston-Acquisition will expand Nightingale's Presence in the U.S. Healthcare Market

MARKHAM, ONTARIO--(CCNMatthews - Jan. 12, 2006) -

(Not for dissemination in the United States)

Nightingale Informatix Corporation (TSX VENTURE:NGH) today announced it has entered into a binding letter of intent (LOI) to acquire the assets and business operations of Integrated Healthware Inc., a healthcare software provider for the U.S. market and its affiliate, Physician Strategies LLC, a practice management firm, headquartered in the State of Massachusetts, focusing on providing claims processing services to U.S. physicians (collectively referred to as "IHPS"). Pursuant to the transaction, IHPS shareholders will receive consideration of US$6 million payable in a combination of cash and Nightingale shares. These shares are escrowed over a two-year period, a component of which is conditional on future financial performance targets being met.

IHPS reported total revenues of approximately US$4 million, over 70 per cent of which is recurring revenue, and EBITDA (earnings before interest, depreciation and amortization) of US$500,000 for the twelve month period ended December 31, 2005, based on unaudited statements.

This transaction supports Nightingale's core growth strategy in the United States and provides Nightingale immediate access to a U.S. billing application and leading claims processing technology specific to the U.S., as well their broad base of loyal customers, estimated at 4,500 users in multi-disciplinary clinics in 13 states, who are ideal candidates for Nightingale's comprehensive suite of tools and services. IHPS offers a broad suite of U.S. based Practice Management software (Billing and Scheduling) and an end-to-end coding and claims processing service which will be integrated with Nightingale's software applications to form a comprehensive technology platform for the healthcare industry.

"Integrated Healthware technologies are ideally suited for our U.S. target market, providing us with one of the most comprehensive suites of physician desktop tools for practice management and electronic medical records systems in the U.S. market," stated Sam Chebib, President and CEO of Nightingale.

"Nightingale and IHPS share a vision on how to accelerate the adoption of technology tools that enable physician automation in North America," said Chebib. "We are very impressed with IHPS management, products and suite of services and strongly believe that this business combination will have significant accretive value to both organizations."

"Nightingale can bring a lot of value to both the IHPS organization and its client base," said Jack Bradbury, Chief Executive Officer of IHPS. "As part of the Nightingale organization, we believe we will be able to leverage their technology, methodology and investment in sales and marketing to scale our business in order to capitalize on the tremendous opportunity that exists in our markets. It is our belief that the IHPS user base will benefit from many of the products and services that Nightingale has in their core business such as the electronic medical record (EMR) application, as well as the transcription and data distribution services which are now available through the recently announced acquisition of HealtheNet."

The transaction, which is subject to TSX Venture Exchange and regulatory approvals, and other customary conditions, is expected to close by spring 2006. In connection with the transaction, the Board of Directors of both Nightingale and IHPS have approved the transaction.

About Nightingale

Nightingale (www.nightingale.md) is Canada's largest healthcare application service provider (ASP) for outpatient clinics. Nightingale's internet-based Electronic Health Record (EHR), Electronic Medical Record (EMR) and practice management solutions are designed to help physicians, clinics, hospitals and other healthcare organizations manage their practices, as well as their patient records through a secure internet browser. Nightingale's solutions offer multi-location, enterprise wide management and reporting capabilities. Nightingale's suite of products offer Canadian and United States physicians leading edge functionality for patient scheduling, resource scheduling, billing, claims processing, work flow tools, clinical documentation, laboratory interfaces, document management and patient portals, and other real-time patient services.

About Integrated Healthware & Physician Strategies, LLC

Integrated Healthware is an innovative software developer for the healthcare industry in the United States. Its flagship products "Entity" and "Physician Work Station" (PWS) offer US physicians and their administrative staff in 13 states the ability to manage their practices, patients and claims. Entity and PWS are being used by over 4500 users to improve the efficiency of their claims processing and clinical data capture. Physician Strategies, LLC, based in Pembroke, Massachusetts, uses state-of-the-art technologies to enable its clients to improve the medical care they provide their patients while increasing the income potential of their practices. The company's mission is to support physicians and physician groups in preserving practice independence, while delivering quality professional practice management systems and services that provide significant value to clients and their patients. In addition to supplying billing and accounts receivable services, Physician Strategies provides practice management consulting, financial management, compliance, credentialing, group purchasing, IS infrastructure development and Web page design services.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. Further information with respect to Nightingale and the Business Combination is available at www.sedar.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nightingale Informatix Corp
    Sam Chebib
    President & Chief Executive Officer
    (905) 943-2611 or Toll Free: 1.800.225.2744
    or
    Surefund Capital Corporation
    Gary Perkins
    President
    (905) 889-1711 or Toll Free: 1.800.225-2744
    or
    Integrated Healthware Inc.
    Jack Bradbury
    Chief Executive Officer
    (617) 413-0262 or Toll Free: 1.888.813-7575
    or
    Strategic/Ampersand for Nightingale
    Anita Wong / Cindy Watson
    (416) 961-5595 ext. 431/433