Healthscreen agrees to buy Regent Healthcare

Telecomworldwire, June 25, 2008

TELECOMWORLDWIRE-25 June 2008-Healthscreen agrees to buy Regent Healthcare(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Healthscreen Solutions Limited (TSX VENTURE:MDU), a supplier of medical software and services to physicians, announced on 24 June that it had signed an agreement to purchase all the outstanding shares of Regent Healthcare Systems.

Regent, based in New Westminster, BC, also provides medical software to around 1,000 physicians, with around 1,000 users of its SmartSeries package.

The definitive agreement to acquire the shares will see Healthscreen paying CAD1m in cash on closing and a further CAD300,000 six months after closing either in cash or in Healthscreen shares.

The cash comes from last month's CAD4.25 debt financing and the purchase price represents 1.8 times trailing recurring revenue, according to the announcement.

The acquisition expands Healthscreen's customer base in Canada, giving the company the option to up-sell Regent's customers to Healthscreen's packages and also giving it the local support to expand into Western Canada.

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