Press release from CNW Group
QHR Corporation Completes Sale of Enterprise Management Solutions Division
Thursday, December 19, 2013
QHR Corporation Completes Sale of Enterprise Management Solutions Division16:01 EST Thursday, December 19, 2013
KELOWNA, BC, Dec. 19, 2013 /CNW/ - QHR Corporation(TSX-V: QHR)("QHR" or the "Company") today announced that it has completed the sale of its Enterprise Management Solutions ("EMS") division to Logibec Groupe Informatique Ltée ("Logibec") for $20 million in cash less working capital adjustments and customary expenses. This transaction was first announced on December 9, 2013. QHR continues to own all of its corporate resources, as well as its core business, the Electronic Medical Records (EMR) division and its Revenue Cycle Management (RCM) division in their entirety.
"We are now able to invest further in the growth of our EMR business and continue to develop our product offerings and expansion plans," said Al Hildebrandt, President and CEO of QHR Corporation. "This transaction provides significant financial capacity to accelerate our growth while maintaining our strategy to continue to increase the recurring revenue component of our business."
Net proceeds from the transaction are approximately $16.5 million (including a holdback of $1.5 million held in escrow for up to 12 months, subject to satisfaction of certain release requirements). QHR expects to record a gain on the sale of approximately $11 million but it does not anticipate that this will result in any requirement to make any cash tax payment. QHR has used approximately $1.3 million of the sale proceeds to repay its term loan with the Royal Bank of Canada.
QHR intends to use a substantial portion of the balance of the sales proceeds to continue it's organic and acquisition strategies to accelerate revenue and earnings growth. Going forward, QHR will remain focused on providing innovative solutions to support our healthcare customers across a broad range of high-growth markets within Canada and the United States. These strategies have the objective of expanding QHR's leadership position in existing markets and growth into new markets.
For more about QHR, visit: www.QHRtechnologies.com
About QHR Corporation
QHR is a leader in quality and technology, providing software and services in the following markets:
In the Electronic Medical Records ("EMR") market, QHR offers a suite of medical software modules that provide computer-based medical records for family physicians, medical specialists, and surgeons, as well as administrative modules for billing and patient scheduling, that is a key component in the move throughout Canada to provide electronic healthcare records for all Canadians. QHR also provides on-site and off-site (ASP) hosting capabilities for the EMR market.
In the Revenue Cycle Management ("RCM") market, QHR provides best in class clearinghouse services, with over 1500 payers, which assist US healthcare providers to exchange claim information that ensures accurate revenue management. QHR provides a progressive medical billing service that outsources coding, payer reconciliation and revenue reporting. QHR also supports employer health plan enrolment, employee health plan eligibility and health care interoperability through a 5010 standard based EDI gateway. The RCM markets that QHR services are primarily in the US.
Legal Notice Regarding Forward Looking Statements
This news release contains "forward looking statements" within the meaning of applicable Canadian securities legislation. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statement. Forward looking statements in this news release include QHR's expectation that it will record a gain of approximately $11 million and its plans for the balance of the sale proceeds, including its intent to use a substantial portion of those proceeds to continue its organic and acquisition strategies to accelerate revenue and earnings growth. Risks that may prevent or delay the forward looking statements from coming to fruition include the risks that QHR may not offer products or services that are acceptable to industry regulators or customers; competitors may offer better or cheaper products; products may not remain competitive; changing regulatory requirements may prevent the Company's products from being sold as expected; the Company's ability to attract or retain key personnel; the risk that QHR's technology becomes obsolete; that orders could be cancelled or delayed and market factors may increase costs more than expected. QHR is a technology business development enterprise where investment and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. It is the Company's policy not to update forward looking statements except to the extent required under applicable securities laws. Further information on the Company is available at www.sedar.com or at the Company's website, www.QHRtechnologies.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE QHR Corporation
For further information:
Al Hildebrandt, President & CEO
Jerry Diener, VP Finance & CFO
Jim Wilson, VP Marketing & Communications