ADAC announces $16.5 million acquisition of Community Health Computing.MILPITAS, Calif.--(BUSINESS WIRE)--April 25, 1995--ADAC Laboratories (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADAC ADAC Allgemeiner Deutscher Automobil Club (German automobile club) ADAC Aboriginal Drug and Alcohol Council ADAC Art Directors and Artists Club (Sacramento, California) ADAC Alcohol and Drug Abuse Council ), a leading producer of diagnostic imaging and healthcare information systems, announced today the confirmation by the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. of the plan of reorganization filed by Community Health Computing Corp. (CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) of Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , in its Chapter 11 case. The Court-approved plan of reorganization incorporates a definitive agreement which provides for ADAC's acquisition of CHC. In making this announcement, David L. Lowe, Chief Executive Officer, stated, "We are extremely pleased to announce the confirmation of CHC's reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. and ADAC's pending acquisition of CHC. ADAC's cost of acquisition is presently estimated at approximately $16.5 million, plus expenses. This acquisition will provide ADAC with a strategically important product for the Laboratory Information Systems market and a recurring maintenance revenue stream of approximately $12 million annually. The Laboratory Information Systems market is estimated at $400 million annually in the U.S., and CHC has 160 installed sites in this market. CHC's new client-server open architecture product, LabStat, will be widely available for customer delivery in early 1996. CHC has already invested 180 staff years in the development of LabStat." Lowe continued: "In addition, CHC has an installed base of 129 sites in the Radiology Information Systems market, and RadStat, a client-server open architecture Radiology Information System. When the CHC Radiology business is combined with our own Radiology business, ADAC will have the largest installed base in the Radiology Information Systems market with over 300 installed sites." Lowe concluded: "This acquisition is a significant step forward in our expansion in the dynamic healthcare information systems market. We expect the acquisition to close in our fourth fiscal quarter." ADAC Laboratories is recognized as the world market share leader in Nuclear Medicine and the leading supplier of Radiology Information Systems in North America. ADAC was one of only six manufacturing companies nationwide receiving a site visit for the Malcolm Baldrige National Quality Award The Malcolm Baldrige National Quality Award is given by the United States National Institute of Standards and Technology. Through the actions of the National Productivity Advisory Committee chaired by Jack Grayson, it was established by the Malcolm Baldrige National Quality in 1994. The company headquarters are in Milpitas, California. CONTACT: ADAC Laboratories J. Embry, 310/355-0761 |
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