Emageon, Health Systems Solutions merger fails to close

By Lisa Kerner

Charlotte, N.C., Feb. 11 - The proposed merger of Emageon Inc. and Health Systems Solutions, Inc. did not close on Wednesday, the extended closing date, due to an expected lack of funding by Stanford International Bank Ltd.

Health Systems said that because no other funding to complete the merger is available to the company at this time, it will not object to releasing a $9 million escrow deposit to Emageon.

In October, Health Systems agreed to acquire Emageon for $2.85 per share in an all-cash transaction valued at about $62 million.

The merger had been stalled by Stanford's refusal to provide funding to close the transaction, it was previously reported.

A $3 million termination fee was included as part of the merger agreement.

Health Systems, based in New York, develops technologies and services for the health-care industry.

Birmingham, Ala.-based Emageon provides information technology systems for hospitals, health-care networks and imaging facilities.

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