The $61.2 million deal adds InfoLogix's mobility solutions expertise and 1,400 hospital customers to Stanley Black & Decker's healthcare solutions business unit.
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Stanley Black & Decker, a diversified industrial company that has a healthcare solutions business unit, announced Wednesday that it will acquire healthcare mobility solutions provider InfoLogix for $61.2 million.
The cash transaction includes the assumption of InfoLogix's outstanding debt of $22.1 million, a portion of which is convertible into shares of common stock. Both companies said the deal is expected to close early in the first quarter of 2011 pending approval from the Securities and Exchange Commission.
The deal marks a turning point for both companies, with Stanley Black & Decker expanding its presence and adding InfoLogix's 1,400 hospital customers to its client base. For InfoLogix, the deal gives the company a financial shot in the arm as well as the technical, sales, and marketing resources it needs to expand its market presence.
"We have the opportunity to be a part of a Fortune 500 multibillion-dollar company that will give us the capital to continue our vision to execute a total solution to the healthcare market around enterprise mobility," David Gulian, InfoLogix's CEO, told InformationWeek.
Gulian pointed out that InfoLogix has been helping hospitals implement and customize their electronic health record systems as they prepare for the Medicare and Medicaid Electronic Health Records Incentive Programs. InfoLogix also has supply chain management solutions such as its HealthTrax, an asset and patient tracking solution that combines real time location system and RFID technology.
InfoLogix's hospital supply chain solutions align well with Stanley Healthcare Solutions' products including Hugs, an infant protection system that helps protect infants from the threat of abduction and mother/infant mismatches. Additionally, its patient protection technology offers a reliable method to protect against patient flight, wandering and abduction, and its medical storage and inventory management systems helps hospitals manage their medical inventory.
"They have a lot of tracking technology and we'll be adding to that. There are a lot of synergies between the both of us," Gulian said. "They want us to help them grow their healthcare business to $1 billion over the next three years by providing more full service opportunities to each individual hospital with the breadth of products we have in combination," Gulian added.