Health Systems Solutions (HSS) of Tampa, FL, apparently is having trouble securing financing for its $62 million acquisition of image management firm Emageon of Birmingham, AL.
According to Emageon, the company received a letter from HSS on December 24, indicating that Stanford International Bank will not provide funding to complete the acquisition.
The communiqué noted that HSS will continue to urge the bank to fund the transaction and that HSS is making every effort to complete the deal.
In a prepared statement, Emageon CEO Chuck Jett said his company will "continue to seek to engage Health Systems and the bank in a constructive dialogue toward the goal of closing as soon as possible."
He added that Emageon is "hopeful that Health Systems will begin to take all such actions as required under the merger agreement to remedy the failure to finance the transaction and close promptly. Failure to remedy the financing promptly will require us to seek all remedies to enforce our rights for the benefit of our stockholders."
On December 22, Emageon threatened to scuttle the deal, asserting that Tampa, FL-based HSS had not agreed to set a closing date and made additional requests for due diligence. Emageon also demanded that the acquisition be completed by December 23.
The two companies announced the deal in October. Emageon shareholders approved the transaction on December 17.
Related Reading
Emageon moves closer to HSS merger, December 24, 2008
Emageon-HSS deal in jeopardy? December 22, 2008
Emageon stockholders OK HSS merger, December 18, 2008
Road to RSNA, Healthcare Informatics, Emageon, November 10, 2008
Road to RSNA, Archiving Systems, Emageon, November 7, 2008
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