Strategic combination positioned to drive quality outcomes improvement beyond current health information technology capabilities
Complementary data analytics and real-time surveillance expertise will support next-generation predictive clinical apps on an integrated technology platform
Expands Premier's footprint by approximately 400 unaffiliated facilities
Ad Statistics
Times Displayed: 22281
Times Visited: 445 Stay up to date with the latest training to fix, troubleshoot, and maintain your critical care devices. GE HealthCare offers multiple training formats to empower teams and expand knowledge, saving you time and money
Provides opportunity to expand relationships with academic medical centers
CHARLOTTE, N.C. - Premier, Inc. (NASDAQ: PINC) has reached a definitive agreement to acquire TheraDoc, a market leading provider of clinical surveillance software, for $117 million in cash, subject to potential purchase price adjustments regarding TheraDoc's actual working capital, cash and indebtedness at closing. The transaction is expected to close in Premier's fiscal 2015 first quarter ending September 30, 2014, subject to customary closing conditions.
TheraDoc is a wholly-owned subsidiary of Hospira (NYSE: HSP). Premier's board of directors unanimously approved the transaction, and applicable antitrust approvals have already been obtained. Based on the trailing twelve months operating earnings provided by TheraDoc, the $117 million represents a purchase price multiple in the 10-11 times range.
Premier expects the acquisition to be accretive to earnings in the first year following the transaction's completion.
"Our growth story continues to evolve with strategic relationships that extend our reach and add value to the U.S. healthcare system," said Susan DeVore, president and CEO of Premier. "The addition of TheraDoc propels Premier to the top position in the clinical surveillance market, significantly strengthening our ability to help health systems monitor and protect patients from infections, harmful drug interactions and other adverse events, crucial capabilities in today's world of performance-based reimbursement. Longer term, we expect the addition of TheraDoc will enable us to create a next-generation predictive safety solution built on Premier's integrated technology platform."
The transaction combines two market leaders with capabilities in data analytics and real-time electronic clinical surveillance. TheraDoc and Premier's capabilities with its SafetyAdvisor® solution are similar in their ability to support both infection prevention and drug therapy surveillance.
Premier has data on one in every three U.S. health system discharges, pushed to members through software as a service (SaaS) apps housed on the PremierConnect® integrated technology platform. Combined, the two organizations will provide clinical surveillance expertise to approximately 1,000 facilities, 400 of which do not have a current relationship with Premier. TheraDoc was ranked as the top product in the infection control and monitoring software category in both 2012 and 2013 by KLAS, a leading health informatics research company. Leveraging this asset in combination with PremierConnect will support a next-generation solution of more than 1,000 safety alerts, capabilities that go well beyond those of electronic health records (EHRs).
