LISLE, IL, April 12 /PRNewswire-FirstCall/ - SXC Health Solutions Corp. ("SXC") (NASDAQ: SXCI, TSX: SXC), announced today it has entered into a definitive agreement to acquire substantially all of the assets of MedMetrics Health Partners, Inc. ("MedMetrics"), the full-service PBM subsidiary of Public Sector Partners, Inc. which is affiliated with a major medical school.
"We are very pleased to welcome MedMetrics and its employees into the SXC fold," said Mark Thierer, Chairman, President and CEO of SXC. "We have worked with MedMetrics as a client and a partner over the past seven years; they began with SXC as a healthcare IT client and later expanded the relationship to include PBM services. This transaction is in keeping with our strategy to acquire assets that currently utilize SXC's technology platform and can be easily integrated. We look forward to leveraging our existing partnership and the strong MedMetrics footprint in the northeast to continue to grow the SXC business in that market."
"MedMetrics has had a long-term, collaborative relationship with SXC and coming together is a natural fit for both of us. The strength of our relationship combined with the resources that SXC brings to the table will bring additional opportunities for our clients to improve care while benefiting from enhanced operational efficiencies," said Jim Hooley, Interim Managing Director of MedMetrics.
The acquisition is subject to various closing conditions and is expected to be completed during the second quarter of 2011. MedMetrics manages approximately $200 million in annual drug spend and is accounted for in SXC's PBM segment. When taking into account deal-related closing expenses and related amortization, the acquisition is not expected to have a material impact to 2011 fully-diluted GAAP EPS.
About MedMetrics Health Partners, Inc.
Founded in 2004, MedMetrics Health Partners, Inc. is a full-service PBM located in Worcester, Massachusetts. MedMetrics features a unique business model which focuses on true net cost drug management with full transparency in all financial transactions and data reporting. MedMetrics is unique among PBMs because of their association with a major medical school, which affords direct access to expert formulary and clinical guidance and academically rigorous, evidence-based clinical programming support.
About Public Sector Partners, Inc.
Public Sector Partners, Inc. is a health care management and consulting organization, affiliated with the University of Massachusetts Medical School's Commonwealth Medicine division. Public Sector Partners offers a full array of program management and consulting services to public health and human service agencies and managed care organizations.
About SXC Health Solutions Corp.
SXC Health Solutions Corp. is a leading provider of pharmacy benefits management (PBM) services and Health Care Information Technology (HCIT) solutions to the healthcare benefits management industry. The SXC's product offerings and solutions combine a wide range of PBM services and software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as health plans, employers, Federal, provincial, and, state and local governments, pharmacy benefit managers, retail pharmacy chains and other healthcare intermediaries. SXC is headquartered in Lisle, Illinois with multiple locations in the US and Canada. For more information please visit www.sxc.com.
Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. We caution that such forward-looking statements involve known and unknown risks, uncertainties and other risks that may cause our actual financial results, performance, or achievements to be materially different from our estimated future results, performance or achievements expressed or implied by those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation, our ability to complete the acquisition of MedMetrics; our ability to achieve increased market acceptance for our product offerings and penetrate new markets; consolidation in the healthcare industry; the existence of undetected errors or similar problems in our software products; our ability to identify and complete acquisitions, manage our growth and integrate acquisitions; our ability to compete successfully; potential liability for the use of incorrect or incomplete data; the length of the sales cycle for our healthcare software solutions; interruption of our operations due to outside sources; our dependence on key customers; maintaining our intellectual property rights and litigation involving intellectual property rights; our ability to obtain, use or successfully integrate third-party licensed technology; compliance with existing laws, regulations and industry initiatives and future change in laws or regulations in the healthcare industry; breach of our security by third parties; our dependence on the expertise of our key personnel; our access to sufficient capital to fund our future requirements; and potential write-offs of goodwill or other intangible assets. This list is not exhaustive of the factors that may affect any of our forward-looking statements. Other factors that should be considered are discussed from time to time in SXC's filings with the U.S. Securities and Exchange Commission, including the risks and uncertainties discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2010 Annual Report on Form 10-K and subsequent Form 10-Qs, which are available at www.sec.gov. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to SXC or persons acting on our behalf are expressly qualified in their entirety by this notice. We disclaim any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE SXC Health Solutions Corp.