QHR TO ACQUIRE CLINICVAULT AND ITS ENTERPRISE CLASS DATACENTRE
Kelowna, BC, September 17, 2008 – Al Hildebrandt, President and CEO of QHR Technologies Inc. (“QHR” or the “Company”) (TSX-Venture: QHR) announced today its agreement to acquire 100% of the shares of Clinicvault Inc. (“Clinicvault”), a privately held Calgary based company. The purchase is subject to TSX Venture Exchange approval.
Clinicvault provides data hosting services as an Application Service Provider (“ASP”) to the growing Electronic Medical Records (“EMR”) market. QHR participates in that market through its subsidiary, Optimed Software Corporation, whose EMR system is sold under the Accuro brand. The acquisition of Clinicvault will enable QHR to seamlessly integrate ASP services into its EMR client service delivery model and will set the Company apart from its competitors. QHR will acquire all the operating assets of Clinicvault including its enterprise class data hosting centre. The management and staff of Clinicvault will continue to operate the company. Consideration for the purchase is 600,000 common shares of QHR, of which 175,000 shares will be released after one year, and the Company assumes $350,000 long-term debt of Clinicvault.
There is a strong trend in the EMR market to provide hosted services to physicians through the ASP delivery model. It reduces physicians’ dependence on IT technical support and it improves security over sensitive patient data. Some Provincial governments are mandating hosted systems if physicians wish to receive government funding for their EMR systems.
In addition to the competitive advantage of providing fully integrated ASP services, the acquisition of Clinicvault will enable QHR to provide other value-added services to physicians such as business continuation services. The acquisition will also provide new opportunities to become a partner with other software providers in the healthcare sector that have systems complementary to QHR’s EMR software, and can benefit from the ASP delivery model.
The purchase of Clinicvault will add approximately $600,000 in annual recurring revenue and will increase QHR’s total annual recurring revenue to approximately $4,500,000.
On behalf of the Board of Directors
Al Hildebrandt, President and CEO
Legal Notice Regarding Forward Looking Statements
This news release may contain “forward looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward–looking statements included in this news release include that “The acquisition of Clinicvault will enable QHR to seamlessly integrate ASP services into its client service delivery model and will set the Company apart from its competitors.”; and, “In addition to the competitive advantage of providing fully integrated ASP services the acquisition of Clinicvault will enable QHR to provide other value-added services to physicians such as business continuation services. The acquisition will also provide new opportunities to become a partner with other software providers in the health care sector that have systems
Suite 210 – 1632 Dickson Avenue Kelowna, BC, Canada V1Y 7T2 Telephone: (250) 763-3122 Facsimile: (250) 717-5266 complementary to QHR’s EMR software, and can benefit from the ASP delivery model.”; and “The purchase of Clinicvault will add approximately $600,000 in annual recurring revenue and will increase QHR’s total annual recurring revenue to approximately $4,500,000.” Results from operations in any given period are not necessarily indicative of results to be expected in future periods. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements. The forward looking statements are based on assumptions that QHR will be able to close its acquisition, and that current plans for ClinicVault can be realized. Factors which may delay or prevent such statements from coming to fruition include our inability to integrate the new technology, competitors having better or cheaper solutions, customer acceptance of our integrated offerings, and our having sufficient capital to carry out our business plans. It is not our policy to update current forward looking statements in future.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Further risk information on the Company is available at www.sedar.com.
QHR provides integrated human resource management, payroll and staff scheduling (“HR”) software systems for the healthcare and social services sector, and electronic medical records (“EMR”) applications for physicians’ medical offices.
For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRtechnologies.com.
