MARKHAM, Ont. – Nightingale Informatix Corp. announced it has entered into a definitive agreement to sell its Canadian assets to Telus Health, Canada’s largest health IT company, for a purchase price of $14 million.
A significant portion of the asset sale proceeds will be used to repay the company’s secured debt, which currently totals approximately $10.4 million as well as other liabilities.
Nightingale will retain ownership of the intellectual property for its V10 (Nexia) EMR platform and rights to use its claims clearinghouse and the ability to use, commercialize or divest from such intellectual property in the global markets outside North America.
The sale represents a sale of substantially all of the company’s Canadian assets (other than its V10 EMR Platform) and requires shareholder approval in order to be completed.
“Telus Health is Canada’s most established provider of Health IT solutions. We share their vision for innovation, continuous improvement and the critical role technology continues to play in evolving the healthcare system in Canada,” said Sam Chebib (pictured), Nightingale’s CEO.
“Our customers can look forward to taking advantage of Telus Health’s wide range of products and expertise, backed by a world-leading telecommunications infrastructure.”
In the event that the transaction is ultimately approved and completed according to the terms of the Agreement, the company will retain ownership of its V10 (Nexia) software technology and rights to use its clearinghouse technology, as well as the rights to use, commercialize or sell its rights in this technology anywhere in the world excluding Canada. The company remains restricted from competing in the United States until October 2018.
The company’s Board of Directors, after consultation with its legal and financial advisors and having considered a number of alternatives, has unanimously determined that the Transaction is in the best interests of the company and its shareholders, is fair from a financial point of view, and is recommending that the shareholders vote in favour of the transaction.
For more than a decade, Nightingale (TSX-V: NGH) has been delivering innovative cloud-based Electronic Health Record (EHR), Practice Management and Claims Clearing House solutions to healthcare organizations across Canada. Our goal is to uncomplicate the day-to-day challenges of healthcare providers. We achieve this by creating software that is truly intuitive – minimizing training and maximizing adoption. We believe so strongly in building easy-to-use software that we structured our entire product team around user-centric design. Our clients are benefiting from this focus through a well-supported and robust solution that presents a holistic view of a person’s well-being in a simple, clean interface, so that the best health decisions can be made. Nightingale – One Patient. One Record. Please visit www.nightingalemd.com.