GE Medical Systems to Acquire Triple G Systems
GE Medical Systems Information Technologies, the healthcare IT business of General Electric Company, and Triple G Systems Group have signed a definitive transaction agreement, pursuant to which GE will acquire Triple G. In this transaction, GE will acquire all of the issued and outstanding common stock of Triple G for a consideration of $3.30 (Canadian) per share, payable in cash.
Triple G, founded in 1991, produces laboratory information systems for healthcare. Its LIMS are licensed by more than 110 healthcare facilities, representing more than 450 clinical laboratories, in the U.S., U.K, Canada and Asia Pacific. Last year, Triple G received recognition from the industry research firm KLAS Enterprises as the premier laboratory information system for healthcare providers.
“Laboratory information systems are critical to delivering quality patient care in today’s healthcare environment,” said Dow Wilson, president and CEO of GE Medical Systems Information Technologies. “The increased focus on raising clinical productivity, while improving the quality of patient care has made clinicians eager for technology that provides real-time patient information across the healthcare enterprise. Because most clinical treatment decisions are based on laboratory test results, the potential for improving patient safety by enhancing workflow in this area is significant,” added Wilson.
According to Wilson, the combination of Triple G’s laboratory information technologies with GE’s advanced clinical information systems and IT implementation experience, will provide clinicians with a comprehensive end-to-end clinical information system spanning all care areas.
“We are extremely excited about joining with GE, which will allow our offerings to become part of a holistic clinical information solution for healthcare providers around the world,” said Lee Green, chairman and CEO of Triple G. “Triple G has a proven record of developing innovative products that improve the quality of patient care. With the backing and resources of GE, our future in healthcare information technology is very bright.”
The transaction, which is subject to the requisite Triple G shareholder and regulatory approvals, and other customary conditions, is expected to close in the third quarter of 2003. In connection with the transaction, Triple G granted GE an option to acquire newly issued shares of Triple G common stock, representing 19.9 percent of its total shares outstanding, at the transaction price of $3.30 (Canadian) per share. GE is also entitled to receive a termination fee from Triple G equal to three percent of the value of the transaction, if the transaction is not completed under certain circumstances.
In addition, members of the Board of Directors of Triple G, who together hold approximately 46 percent of the shares of Triple G common stock outstanding, have agreed to vote their shares in favor of the proposed transaction. The Board of Directors of Triple G has unanimously approved the transaction. Orion Securities Inc. (formerly Yorkton Securities Inc.) has provided a fairness opinion to the Triple G Board of Directors.