CITATION Computer Systems Announces Agreement to Sell UK Business.ST. LOUIS--(BUSINESS WIRE)--Jan. 22, 1997--CITATION Computer Systems Inc. today announced a preliminary agreement to sell its United Kingdom operations to Health Systems Limited, which will also become CITATION's exclusive distributor for its clinical software products in the UK. The sale price was not disclosed. Under the terms of the memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. , Health Systems Limited will acquire CITATION's operating assets Operating Assets Another term for working capital. , retain the majority of the Company's employees in the UK and assume responsibility for CITATION's existing customers and contracted commitments in the UK. The preliminary agreement will provide CITATION Citation (foaled 1945) U.S. Thoroughbred racehorse. In four seasons he won 32 of 45 races, finished second in ten, and third in two. He won the 1948 Triple Crown, and became the first horse to win $1 million. He set a world record in 1950 by running a mile in 1:33 3/5. with royalties on any future sales made by Health Systems of CITATION clinical software products in the UK. The sale is anticipated to close by late February February: see month. . This transaction will result in a loss of between $.35 and $.40 per share to be recognized in the fourth quarter of fiscal 1997, which ends March 31. J. Robert Copper, CITATION's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "CITATION's UK operations have resulted in disappointing sales and operating results and, more importantly, required large amounts of cash to fund its operations. This agreement will remove the volatility and cash drain from CITATION in the future. It also establishes a distributor for CITATION in the UK, which has long been the Company's preferred method of doing business internationally. It is also expected to provide CITATION a source of income and positive cash flow. We believe that this agreement will have a positive impact on our future." Health Systems Limited is being formed by a group of executives with significant healthcare information systems experience in the UK. CITATION provides comprehensive client/server information systems for clinical areas, financial/administrative areas, and a community-wide registration system. CITATION has 600 systems in more than 450 healthcare facilities throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada, the United Kingdom, Ireland, Asia-Pacific and other countries. CITATION has its headquarters in St. Louis, Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. . -0- CITATION -- The Best Information Systems Value in Healthcare CONTACT: CITATION Rick Neece, 314/579-7900 Ned Maniscalco, 314/982-1700 |
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