Emageon terminates merger with Health Systems Solutions

By Lisa Kerner

Charlotte, N.C., Feb. 13 - Emageon Inc. terminated its amended merger agreement with Health Systems Solutions, Inc. after Health Systems failed to receive necessary financing to close the merger by the closing date, which was Wednesday.

According to Emageon, it has received the $9 million placed in escrow by Health Systems in connection with the termination.

It was previously reported that Health Systems could not close the merger due to a lack of funding by Stanford International Bank Ltd. and lack of alternative funding sources.

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

A $3 million termination fee was included as part of the merger agreement.

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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