Companies

QHR acquires financial division from Momentum

KELOWNA, B.C. – Al Hildebrandt, President and CEO of QHR Technologies Inc., announced that the company has signed an agreement to acquire the financial software division of Momentum Healthware, Inc., a privately held Winnipeg based company. Under the agreement, QHR is acquiring the assets of Momentum’s financial software division.

The Financial Software Division is a market leader in providing customized financial software built on the Dynamics GP (formerly Great Plains) platform. It markets its software to medium to large healthcare facilities, the same market segment that QHR targets with its payroll, scheduling and human resource management software.

In announcing the purchase, Mr. Hildebrandt said, “Momentum and QHR have worked together as partners since the inception of our two companies, serving a common client base. The acquisition of the Financial Software Division gives QHR the opportunity to become the dominant player in providing a comprehensive enterprise management software solution to the healthcare market. I am delighted with the acquisition, particularly because Charles LaFlèche, the founder of Momentum, will be taking an executive management role with QHR”.

As part of the agreement, Mr. LaFlèche will spend 60% of his time for the first year assisting QHR’s management with the transition, as well as various sales and marketing activities, in addition to continuing with his executive management role with Momentum.

Glenn Tinkler, President and CEO of Momentum said, “When we decided to focus our strategy on our clinical software division and to divest our Financial Software Division, it was important that we placed the business with the right partner. We have had a long relationship with QHR and we are delighted that they have agreed to the purchase. We know our clients will be well served and that we will continue to work with QHR on future initiatives in the healthcare market”.

QHR is acquiring the Financial Software Division for $5 million. Payment terms call for a payment of $2 million on closing with the balance of $3 million due by March 31, 2009. To finance the initial payment, QHR has secured three year term loans from private investors. In addition to interest, investors receive at maturity, 200 common shares for each $1,000 of loan principal.

The Financial Software Division will be merged with QHR’s HR Division under the leadership of its COO, Larry Smith, who recently joined QHR (see press release January 15, 2009). All of the staff at Momentum currently supporting the Financial Software Division will join QHR and remain in Winnipeg. As ongoing strategic partners Momentum and QHR will have offices adjacent to each other. There is expected to be a smooth transition because clients will have the same support and services relationships.

The merger of QHR’s HR Division with the newly acquired Financial Software Division should open up large opportunities for new sales and the potential to cross sell to each division’s client base. With this announcement QHR is announcing the opening of a Winnipeg office and a continued strong presence in Manitoba.

It is anticipated that the Financial Software Division will add approximately $3,500,000 to QHR’s revenue for 2009. The Financial Software Division has an identical business model to QHR in that a large portion of revenue is of a recurring nature. The acquisition will immediately add approximately $1.5 million of recurring revenue to QHR to bring its total consolidated recurring revenue to approximately $5.5 million.

QHR
QHR provides integrated human resource management, payroll and staff scheduling (“HR”) software systems for the healthcare and social services sector, and electronic medical records (“EMR”) applications for physicians’ medical offices. For a more complete business and financial profile of the company, interested parties are encouraged to visit the Company’s website: www.QHRtechnologies.com.