Media Releases
Emergis acquires Ontario health IT company Unikoan
Toronto, July 3, 2007 — Emergis Inc. (TSX: EME) today
announced that it has acquired Unikoan Inc., a Toronto-based consulting, development
and managed services organization specializing in electronic health record (EHR)
applications, for an initial cash payment of $15.3 million plus contingent consideration
based on future financial performance. Among its various activities, Unikoan
has played an integral role since 1999 in the development and operation of the
electronic Child Health Network (eCHN), a pediatric EHR system in operation
at 84 hospital sites, 42 Community Care Access Centres, 20 Children's
Treatment Centres and 500 physician offices across Ontario. Unikoan also provides
ongoing managed services to support and enhance this province-wide solution.
In addition to eCHN, the company also has customers in the geriatric care and
family services areas.
“The acquisition of Unikoan strengthens our position in the electronic
health record market in Ontario, adding knowhow and a strong presence across
the province. It will allow us to more effectively contribute to Ontario's
goal to deploy EHR for all its citizens,” said François Côté,
President and Chief Executive Officer of Emergis. “Unikoan's expertise
in the Canadian health care industry complements Emergis' offerings in
the health-related professional and managed services areas, as well as in information
security.”
With its staff of 40 employees and consultants, Unikoan has focused mainly
on complex health care development projects and the integration of disparate
health care systems. For eCHN specifically, Unikoan is involved in the deployment
of the network as it expands its user base among hospitals and other points
of care in Ontario. In addition to integrating hospitals across Ontario for
eCHN, Unikoan has also built numerous tools and components to support the millions
of clinical transactions stored in eCHN's data repositories.
Emergis will update its financial targets for 2007 to reflect the impact of
the acquisition when it reports its second quarter financial results on August
2.
About Emergis
Emergis is an IT leader in Canada that focuses on the health and financial services
sectors. It develops and manages solutions that automate transactions and the
secure exchange of information to increase the process efficiency and quality
of service of its customers. Emergis has expertise in electronic health-related
claims processing, health record systems, pharmacy management solutions, cash
management and loan document processing and registration. In Canada, Emergis
delivers solutions to the main insurance companies, top financial institutions,
government agencies, hospitals, large corporations, real estate lawyers and
notaries and 2,800 pharmacies. Its electronic health record solutions are also
delivered in the U.S. and Australia. The Company's shares (TSX: EME) are included
in the S&P/TSX Composite Index.
Certain information in this news release, in various filings with Canadian
regulators, in reports to shareholders and in other communications, is forward-looking
within the meaning of certain securi¬ties laws, and is subject to important
risks, uncertainties and assumptions. This forward-looking information includes,
among others, information with respect to the Company's objectives and
the strategies to achieve those objectives, as well as information with respect
to the Company's beliefs, plans, expectations, anticipations, estimates
and intentions. The words “may”, “could”, “should”,
“would”, “suspect”, “outlook”, “believe”,
“anticipate”, “estimate”, “expect”, “intend”,
“plan”, “target” and similar words and expressions are
used to identify forward-looking information. The forward-looking information
in this news release describes the Company's expectations as of July 3,
2007.
The results or events predicted in such forward-looking information may differ
materially from actual results or events. Material factors which could cause
actual results or events to differ materially from a conclusion, forecast or
projection in such forward-looking information include, among others: general
economic factors, adverse industry events, the adoption rate of the Company's
solutions by customers and by related electronic trading communities, its ability
to deliver development and implementation projects in a timely manner, the non-renewal
of major contracts which expire in the near term, complexities and timing of
signing large customer contracts, customers developing internally the capability
to perform the services which the Company performs on their behalf, its response
to its industry's rapid pace of change, the limited time to capitalize
on market opportunities, competition, pricing pressures, fluctuations in its
operating results, its ability to make and integrate acquisitions, failures
or material changes in its strategic relationships, exposure under contract
indemnities, defects in software or failures in the processing of transactions,
security and privacy breaches, its ability to attract and retain key personnel,
its ability to protect its intellectual property, intellectual property infringement
claims, and industry and government regulation.
When relying on the Company's forward-looking information to make decisions,
investors and others should carefully consider the foregoing factors and other
uncertainties and potential events. In making the forward-looking information
contained in this news release, the Company does not assume any significant
acquisitions, dispositions or one-time items. It does assume, however, the renewal
of certain customer contracts. Every year, Emergis has major customer contracts
that it needs to renew. One of these represents slightly more than 10% of its
annual revenue. In addition, the Company also assumes the signature of contracts
in new markets in the public health sector. In this regard, Emergis is pursuing
large opportunities that present a very long and complex sales cycle, which
substantially affect the Company's forecasting abilities. The Company
has made certain assumptions regarding the timing of the realization of these
opportunities which it thinks is reasonable but which may not be achieved. Furthermore,
the pursuit of these larger opportunities does not ensure a linear progression
of the Company's revenue and earnings, since they may involve significant
up-front fees followed by reduced ongoing payments. The Company has assumed
a certain progression, which may not be realized. It has also assumed that the
material factors referred to in the previous paragraph will not result in such
forward-looking information to differ materially from actual results or events.
However, the list of these factors is not exhaustive and is subject to change
and there can be no assurance that such assumptions will reflect the actual
outcome of such items or factors. For additional information with respect to
certain of these and other factors, refer to the risks and uncertainties section
of the Company's 2006 MD&A and to its 2006 Annual Information Form
(risks and uncertainties) filed with Canadian regulators.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE
EXPECTATIONS OF EMERGIS AS OF JULY 3, 2007 AND, ACCORDINGLY, IS SUBJECT TO CHANGE
AFTER SUCH DATE. HOWEVER, EMERGIS EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION
TO UPDATE OR REVISE ANY FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF
NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE
LAW.