Radiology information systems company VitalWorks of Ridgefield, CT, is planning to sell its medical division, which markets private physician office information technology, for $100 million in cash to healthcare informatics vendor Cerner of Kansas City, MO. VitalWorks made the divestiture to focus on its Amicas radiology division, which includes PACS and RIS operations.
VitalWorks' medical division serves nearly 3,500 private physician offices and hospital clients with software for practice management, ambulatory electronic medical records, transaction processing, and emergency departments. The divestiture of the medical division will allow the firm to focus completely on its radiology business, VitalWorks said.
The transaction will expand Cerner's presence in the physician practice market, an area which is expected to increase as the U.S. government continues its push to bring medical information to the point of care, Cerner said.
Cerner estimates that 100,000 physicians using its software to manage their patients in hospitals, clinics, and physician offices. The VitalWorks acquisition will bring nearly 30,000 additional physicians to Cerner, raising the total number of estimated physicians reached by the firm to nearly 130,000.
The sale of the medical division is targeted to produce approximately $70 million in revenue for 2004, and is expected to be completed in 45 to 60 days, pending regulatory approval, VitalWorks said.
In a move related to the deal, VitalWorks reported that it has established a single, unified division to focus on the image and information management business. This division, which was created by consolidating the company's Amicas PACS operations and the VitalWorks radiology division operations, has adopted the name Amicas, and will be led by a single management team.
By AuntMinnie.com staff writers
November 16, 2004
Related Reading
VitalWorks reports Q3 results, November 8, 2004
VitalWorks lawsuit dismissed, October 5, 2004
VitalWorks names new finance officer, moves offices, October 1, 2004
Cerner hits Millennium milestone, July 29, 2004
Earnings, sales rise at Cerner, July 22, 2004
Copyright © 2004 AuntMinnie.com
