Omnicell Announces Agreement to Acquire Rioux Vision, Inc.
MOUNTAIN VIEW, Calif., Nov. 30 /PRNewswire-FirstCall/ -- Omnicell, Inc.
(Nasdaq: OMCL), a leading provider of system solutions to acute healthcarefacilities, today announced that it has entered into a definitive agreement toacquire Rioux Vision, Inc. in an all cash transaction valued at approximately$26 million, subject to adjustment. Rioux Vision designs and manufacturesmobile cart technology that brings quality healthcare to the bedside through apoint-of-care medication management process. Rioux Vision is a privately-heldcompany based in Elgin, S.C. and has approximately 60 employees.
Rioux Vision mobile cart technologies, such as the recently announcedRIO(TM) product, are fully-integrated into the bedside point-of-careenvironment, enabling nurses to have easy access to patient records andelectronically integrate the process of record keeping into the patient careprocess. The RIO(TM) product offers a removable medication distribution cartoption and features multiple drawer configurations. The system also featuresa removable, exchangeable power management system and software.
"We are excited to add mobile cart technology to our extensive line ofmedication-use systems. Mobile technology will enable clinicians to increasetheir productivity and the accuracy of their record keeping, which furtherleads to improved patient care," said Randall A. Lipps, chairman, president &CEO, Omnicell. "We look forward to welcoming Rioux Vision employees and wecontinue to focus on delivering the best customer experience in healthcare tohelp our customers continually improve patient safety."
Under terms of the agreement, Omnicell will acquire 100% of theoutstanding shares of Rioux Vision, which will become a wholly-ownedsubsidiary of Omnicell. The transaction is expected to generate additionalrevenue growth of approximately 5%-6% in 2008. During 2008, as Omnicellincurs the expenses of integrating the Rioux Vision product line with theOmnicell suite of medication management software, Omnicell expects the resultsof the transaction to be dilutive to earnings by approximately $0.05 pershare. In 2009, after the Rioux Vision product line is fully integrated withthe Omnicell line, Omnicell expects the transaction to become accretive.Closing of the transaction is expected to occur in the current quarter endingDecember 31, 2007, subject to the satisfaction of customary closingconditions.
For more information:
Omnicell will hold a conference call regarding this announcement onMonday, December 3, 2007 at 5:30 a.m. PST. To join the call dial:888-803-5209 within the U.S. or 1-706-679-1978 for all other locations. Theconference call ID is: 26416493.
Internet users can access the call at: www.omnicell.com. A replay of thecall will be available Monday at approximately 9:00 a.m. PST and will beavailable for one week or until December 6. The replay access numbers are1-800-642-1687 within the U.S. and 1-706-645-9291 for all other locations,pass code 26416493#.
Forward Looking Statements
To the extent any statements contained in this press release deal withinformation that is not historical, these statements are necessarily forward-looking. As such, they are subject to the occurrence of events outsideOmnicell's control and are subject to various riskfactors that could cause actual results to differ materially from thoseexpressed or implied in any forward-looking statement. Factors that couldcause or contribute to such differences include, but are not limited to, risksassociated with the transaction's effect on Omnicell's financial results,Omnicell's ability to successfully integrate Rioux Vision's product lines,business or employees into Omnicell's business, and the perceived value of theRioux Vision technology to Omnicell's customers. Prospective investors arecautioned not to place undue reliance on forward-looking statements.
About Omnicell
Omnicell, Inc. (Nasdaq: OMCL) is a leading provider of systems andsoftware solutions targeting patient safety and operational efficiency inhealthcare facilities. Since 1992, Omnicell has worked to enhance patientsafety and allow clinicians to spend more time with their patients.
Omnicell's medication-use product line includes solutions for the centralpharmacy, nursing unit, operating room, and patient bedside. Solutions rangefrom large central pharmacy smart inventory carousels to small handhelddevices. From the point at which a medication arrives at the receiving dockto the time it is administered, Omnicell systems store it, package it, barcode it, order it, issue it, and provide information and controls on its useand reorder.
Our supply product lines provide a healthcare institution with fast,effective control of costs, capture of charges for payer reimbursement, andtimely reorder of supplies. Products range from high-security closed-cabinetsystems and software to open-shelf and combination solutions in the nursingunit, catheter lab and operating room.
Omnicell's mission is to provide the best customer experience inhealthcare, helping hospitals reduce medication errors, operate moreefficiently, and decrease costs. For more information, visit www.omnicell.com.SOURCE Omnicell, Inc.Rob Seim, Chief Financial Officer, 1-800-850-6664, ext. 6478,robs@omnicell.com, or Deborah J. Reinert, +1-650-251-6403,deborahr@omnicell.com, both of Omnicell, Inc.
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