Keane announces agreement to acquire the business of Source Data Systems

Business Wire, Oct 25, 1995

BOSTON--(BUSINESS WIRE)--Oct. 25, 1995--Keane Inc. (AMEX: KEA) today announced the signing of an agreement to acquire substantially all the assets of Source Data Systems Inc. (SDS), a privately held developer and supplier of healthcare system applications based in Cedar Rapids, Iowa, with annual revenues of approximately $11 million.

SDS, which employs approximately 125 professionals, has over 170 hospital clients throughout the United States. The acquisition is subject to final approval and certain conditions and is expected to close in early November.

If the proposed acquisition is completed, Keane will acquire substantially all the assets of SDS, including its product line, SDS/INFINET, a healthcare patient information repository, and the SDS/MEDNET suite of hospital financial and patient management/order communications systems. Keane expects to market and sell SDS/INFINET and to provide maintenance and support for the SDS/MEDNET suite of systems from the Cedar Rapids facility. SDS principals Gary Ford and Robert Barnett have agreed to join Keane's management team in Cedar Rapids upon completion of the acquisition. Financial terms of the agreement were not disclosed.

"The proposed acquisition of SDS is a continuation of Keane's Healthcare Services Division (HSD) strategy - to expand the scope of its open healthcare systems to a growing customer installed base," said Ray Paris, vice president and general manager of Keane's HSD.

"The addition of SDS's customers would bring the total number of Keane clients to more than 400 hospitals and 600 long-term care facilities. Additionally, SDS/INFINET would become an important product within Keane's Threshold family of hospital information systems," Paris said.

SDS/INFINET is a UNIX-based enterprise-wide information system designed as the groundwork for the computerized patient record and electronic medical record. The system is installed in three Power Levels and encompasses features and functions at each level. Power Level I includes data repository, enterprise-wide office automation, and communications features; Power Level II provides collection and distribution of clinical reports and print image or data results; Power Level III features archival management via optical technology.

Keane Inc. is a $375 million software services company that designs, develops and manages software for corporations and healthcare facilities. Keane's Healthcare Services Division (HSD) was created in 1975 to offer the technical and management capabilities of Keane Inc. to the healthcare environment. HSD's product lines include a patient accounting system, financial, patient care and clinical applications and Leadership Plus for long-term care facilities. With its division headquarters in Melville, N.Y., HSD has branch offices in Hunt Valley, Md., Los Angeles, Dallas and Boston.

CONTACT: Keane Inc.

Carol DeMatteo, 617/241-9200