HealthStream To Buy HealthLine Systems For About $88 Mln In Cash - Quick Facts

(RTTNews) - HealthStream (HSTM), a provider of workforce development and research/patient experience solutions for the healthcare industry, announced that it has entered into a definitive agreement to acquire San Diego-based HealthLine Systems Inc. for approximately $88 million in cash.

It is expected that acquisition to be accretive to the overall financial profile of the Company, including its earnings, cash flow, and earnings per share on a pro forma basis before taking into account GAAP required deferred revenue write-down of acquired balance.

Following the closing of this transaction, HealthStream intends to combine HealthLine with its SyMed business to form a new, rebranded company, maintaining offices in San Diego, California and Brentwood, Tennessee.

Products from HealthLine will combine with SyMed solutions to comprise this expanded area of HealthStream's business.

Michael Sousa will assume the role of President of HealthStream's credentialing, privileging, and provider enrollment business. Sousa has served as HealthStream's Senior Vice President, Business Development since June 2014. He previously served as HealthStream's Senior Vice President, Sales where he re-engineered and led the HealthStream sales teams into an integrated, high-performing sales organization. Earlier in his HealthStream tenure, he oversaw the design, launch, and growth of the HealthStream Strategic Accounts Program and HealthStream Professional Services, two successful initiatives.

The closing of the transaction is anticipated to occur in the first quarter and is subject to customary conditions, including the expiration or early termination of the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Bailey Southwell & Co. served as an advisor to HealthStream on the transaction.