MONTREAL, QUEBEC - TECSYS Inc. announced it has signed an agreement to purchase all of the shares of Logi-D Holding Inc. ("Logi-D"), a leading provider of point-of-use technology for supply chain automation servicing hospitals and healthcare organizations.
"This acquisition will bring together two Quebec based technology companies with complementary product lines, and extend our leadership in healthcare supply chains where more than 30% of our business is currently coming from," said Peter Brereton, President and CEO of TECSYS. "Logi-D's technology reduces the time clinical staff spend managing their inventory, leading to proven reduction in costs with improved patient care and outcomes. We remain the only supply chain solution built to address the specific needs of the healthcare industry, and will continue to expand our offerings both organically and through acquisitions."
"Having established Logi-D as the leading provider for point of use automation solutions in North American hospitals, joining TECSYS will help bring us to the next level," said Richard Philippe, Founder and CEO of Logi-D. "Being a part of the top solution for healthcare supply chains opens new avenues for us to expand our product footprint. With our resources now combined, I look forward to joining the TECSYS team and providing our customers the best solution available."
The company will acquire Logi-D's shares for $2,950,000 in cash, subject to adjustment, and $100,000 in common shares of TECSYS. The company shares will be issued to a founder of Logi-D and will be equal to the number obtained by dividing $100,000 by the average daily closing price for the TECSYS common shares on the TSX for the 20 trading days prior to closing. Completion of the acquisition is subject to customary closing conditions, including approval of the TSX.
Management anticipates that the deal will close May 31, 2014 and plans to pay for the cash component from its existing cash balance. Logi-D had revenue of $5,572,000 in its fiscal year ended June 30th, 2013. Logi-D, which is based in Laval, Quebec, has approximately 27 employees.