Healthcare information technology firm Cerner has announced a definitive agreement to buy Citation Computer Systems in an effort to expand its presence in laboratory information systems. In announcing the planned acquisition, Cerner highlighted Citation's market position in laboratory systems for small and mid-sized hospitals.
Citation of St. Louis provides clinical laboratory systems to approximately 300 clients throughout the U.S. and Canada, and through distribution partners in Latin America and the Asia Pacific region, according to Cerner. The majority of Citation's customers utilize its C-LAB laboratory information system, although Citation also offers C-RIS, a radiology information system, and C-COM, a communications and database management system.
Under terms of the deal, Kansas City-based Cerner will exchange 0.153 shares of Cerner stock and $.51 in cash for each share of Citation, based on a calculation of 598,000 shares of Cerner stock for 90% of Citation and payment of $2 million for the remaining 10%. The transaction will be accounted for as a purchase and is expected to close in the third quarter of this year, pending Citation shareholder and regulatory approval.
By AuntMinnie.com staff writersMay 16, 2000
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