McKesson and Medcon announced on June 20, 2005, that the two companies had signed a definitive agreement for McKesson to acquire Medcon. A global provider of Web-based cardiac image and information management addressing the full spectrum of needs for heart centers, Medcon's offerings include diagnostic digital image management and archiving, procedure reporting, and workflow management.
Medcon reported sales of approximately US$17 million for the 12 months ended December 31, 2004. The acquisition will have no material impact on McKesson's Fiscal 2006 earnings per fully diluted share, however, certain one-time costs, consisting primarily of the write-off of in-process research and development expense, will result in a negative impact to McKesson Provider Technologies' operating profit in fiscal 2006. In Fiscal 2007, the acquisition is expected to be modestly accretive to both McKesson Provider Technologies' operating profit and McKesson earnings per fully diluted share.
McKesson Corporation, currently ranked 15th on the Fortune 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 172-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare, and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information on the Medcon announcement, visit www.mpt.mckesson.com.
Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements may be identified by their use of forward-looking terminology such as "believes," "expects," "anticipates," "may," "will," "should," "seeks," "approximates," "intends," "plans," "estimates" or the negative of these words or other comparable terminology, and include reference to timing and completion of the merger, financial impact of the merger in fiscal 2006 and 2007, acceleration of McKesson's sales in the cardiology IT sector, growth in the overall revenue in the cardiology IT sector, and McKesson's ability to successfully integrate Medcon into McKesson's existing products and services. The most significant of these risks and uncertainties are described in the company's Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission and include, but are not limited to: the resolution or outcome of pending litigation and government investigations relating to the company's previously announced financial restatement ("Restatement"); the effect of the events relating to, or arising out of, the Restatement on the company's ability to attract and retain employees and management; the changing U.S. healthcare environment, including potential changes in private and governmental reimbursement for healthcare products and services, the method by which such products and services are delivered, legislation or regulations governing such products and services, or mandated benefits or changes in manufacturer's pricing or distribution policies; substantial defaults in payment or a material reduction in purchases by large customers; the ability of McKesson Information Solutions to retain existing customers and to attract new customers in light of rapid technological advances, challenges in integrating the company's software products, or the slowing or deferral of demand for such products resulting from the impact of current or pending government regulations; the timing and amounts of the ongoing customer settlement process; and the company's ability to successfully integrate and operate acquired businesses, and manage the risks associated with such businesses, including the acquisition of the business formerly known as HBO & Co. The company assumes no obligation to update information contained in this release.