Cegedim, a global technology and services company specializing in the healthcare field, announced on Wednesday its acquisition of Wichita, Kan.-based Pulse Systems, Inc., a leading U.S. healthcare software and services supplier.
The move gives Cegedim access to the U.S. electronic health records and practice management (PM) software market. The group’s Cegedim Healthcare Software (CHS) division is already one of the leading European publishers of medical, paramedical and pharmacy management software, with a market share of 119,000 healthcare professionals and over 16,000 pharmacies using its solutions in seven countries. It now aims to be a global player.
"Pulse provides Cegedim an optimal entry and platform into the rapidly growing U.S. healthcare computerization market," said Alain Missoffe, chairman of Cegedim Healthcare Software. "We expect to capitalize on their superior healthcare software, vast market knowledge, excellent customer service and technological prowess to deliver EHR and PM solutions to healthcare professionals with the best possible chances of success."
The acquisition will enable Cegedim to leverage its complementary activities in North America and transform its European Cegedim Healthcare Software division into a worldwide presence by utilizing the Pulse solutions to expand its presence in the US market.
Founded in 1997, Pulse has developed a sophisticated and scalable ambulatory healthcare IT solution, Pulse Patient Relationship Management. This solution includes EHR, PM, e-prescribing and revenue cycle management services. With more than 20,000 workstations installed across the US in 35 specialties, the company is one of the leading actors in its field. Cegedim will entrust Pulse Systems’s continued growth to its current management, whose head office will remain in Wichita.
Pulse’s businesses represent estimated annual revenues of around $16 million in 2010; it expects to increase its revenues more than four-fold by 2014.
To allow Pulse Systems to continue its R&D efforts and bolster its sales and marketing actions, Cegedim will inject $13.5 million into Pulse. The total amount of the acquisition, excluding capital increase and including a portion in the form of an additional payment based on growth and profitability targets over 2 years will not exceed $58 million.
“Cegedim will provide a capital infusion to leapfrog our industry leading product portfolio while continuing to focus on superior customer support and on the performance and high end-user utilization that we have achieved over the years,” said Alif Hourani, Pulse’s executive chairman. “In addition, it will be exciting to leverage Cegedim’s intellectual capital from their vast European EHR experience."
