Emageon, Health Systems merger won't close as planned due to lack of funding

By Lisa Kerner

Charlotte, N.C., Dec. 24 - The proposed merger of Emageon Inc. and Health Systems Solutions, Inc. has been stalled by Stanford International Bank Ltd.'s refusal to provide funding to close the deal.

According to Emageon, Health Systems is continuing to work to complete the merger and to cause Stanford to provide funding.

It was previously reported that Health Systems demanded that Stanford fund the merger's close on Dec. 23.

"We continue to seek to engage Health Systems and SIBL in a constructive dialogue towards the goal of closing as soon as possible," Emageon chief executive officer Chuck Jett said in a company news release.

"Failure to remedy the financing promptly will require us to seek all remedies to enforce our rights for the benefit of our stockholders."

In October, Health Systems agreed acquire Emageon for $2.85 per share in an all-cash transaction valued at about $62 million.

Health Systems, based in New York, develops technologies and services for the health-care industry.

Birmingham, Ala.-based Emageon provides information technology systems for hospitals, health-care networks and imaging facilities.

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