The purchase, which includes the retention of key employees, was made with 3 million restricted H-Quotient shares and a three-year option to purchase another 3 million shares at $1.23 per share. The transaction is accretive rather than dilutive because the combined companies are projected to generate more than $14 million in 2003 sales and more than $.40 per share in earnings.
Intelliservices is a debt-free company with 31 employees and contractors and is headquartered in Fort Mill, S.C.
The IntelliServices platform is a web-based thin client solution developed with JAVA language and n-tier architecture using object-oriented methodology that allows the rapid addition of new products (less than 90 days to develop a product for a different vertical). Built in interfaces (XML, HL7, etc.) allow bi-directional flow of information facilitating integration with legacy systems.
Direct communication between remote devices/healthcare technologies and the clinician is achieved through a web server, and capabilities include real-time data mining and reporting, role-based privileges, point of service (POS) real-time billing, insurance verification, and pre-certification/referral authorization.
The resulting software products are fully scaleable with no limitation on the number of patients or records. The suite of products includes:
IntelliPhysician is a web-based medical practice management system for clinics and hospitals that improves patient care, reduces costs and electronically streamlines all medical office functions, including:
a.) Front office- scheduling, appointment tracking, contact management, task assignment;
b.) Clinical workflow improvement tools such as history and physical examination, medications, prescription refills, recalls, physician order entry;
c.) Back office- billing, paperless claims, insurance verification, claim status and accounts receivable management.
IntelliHeart is a web-based system that enhances a physician's ability to follow-up patients suffering from ailments requiring ongoing cardiology care such as pacemaker patients, including the tracking of recall and advisory alerts. All the features of the IntelliPhysician are integrated into it.
IntelliSight is a web-based ophthalmology application that integrates IntelliPhysician. It facilitates the detailed capture of ophthalmology clinical and surgical data including Lasik procedures. Outcome measures are generated for surgery data to compare the achieved refractive change with the attempted one.
Intelliservices, Inc., CEO and President Dr. Hemanth Rao said, "The synergies between the two companies at the corporate, technological and marketing levels are so significant that we foresee a rapid expansion in sales as well as the development of new products. I am looking forward to a long and fruitful relationship with H-Quotient."
H-Quotient CEO and President Douglas A. Cohn said, "The fit between our two companies is outstanding and the combined company will be a cutting-edge leader in the rapidly growing medical software market - a market with high operating margins and strong recurring revenues."
Vincent J. Scamacca and Jason M. Baker of Advisors, Inc. (www.advisoryzone.com), a Charlotte, N.C., consulting firm, were instrumental in effectuating the relationship and consummating the acquisition.
This announcement may contain, in addition to historical information, certain forward-looking statements that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated.
For more information visit the H-Quotient web site at www.hquotient.com.