HealthStream, a provider of workforce development and research/patient experience solutions for the healthcare industry, has entered into a definitive agreement to acquire San Diego-based HealthLine Systems, Inc. for approximately $88 million in cash.
Acquisition is accretive to the overall financial profile of the Company, including its earnings, cash flow, and EPS on a pro forma basis before taking into account GAAP required deferred revenue write-down of acquired balance. Under the terms of the agreement, HealthStream senior executive, Michael Sousa, has been selected to serve as President for the Company's new healthcare provider credentialing, privileging, and enrollment business following the acquisition.
Following the closing of this transaction, HealthStream intends to combine HealthLine with its SyMed business to form a new, rebranded company, maintaining offices in San Diego, California and Brentwood, Tennessee. HealthStream's SyMed OneApp™ application automates the paper-intensive, time-consuming tasks involved in credentialing and requesting enrollment in a health insurance network for physicians, nurse practitioners, and other healthcare providers. Products from HealthLine will combine with our SyMed solutions to comprise this expanded area of HealthStream's business.
The closing of the transaction is anticipated to occur in the first quarter and is subject to customary conditions, including the expiration or early termination of the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Bailey Southwell & Co. served as an advisor to HealthStream on the transaction.
