GE Medical Systems to Acquire MECON, Inc.

GE Medical Systems, a business of General Electric Company, has signed a definitive agreement to acquire MECON, Inc. for $11.25 per share payable in GE stock. The acquisition is expected to close by February 2000 and will enable GE Medical Systems to provide solutions to its customers' most critical economic issues. MECON is a leading provider of Internet-based benchmarking and cost management solutions for healthcare systems.

Key Takeaways:

• The acquisition of MECON, Inc. by GE Medical Systems is expected to provide significant benefits to MECON shareholders, customers, and employees.
• The transaction will combine the resources of GE Medical with MECON's innovative business model for driving improved customer financial performance.
• MECON has taken decisive steps recently to reposition the company as a leading provider of internet-based healthcare productivity solutions.
• The acquisition is subject to MECON shareholder approval, government approvals, and other customary conditions.
• GE Medical Systems will acquire 19.9% of MECON's total shares outstanding, with Mr. Devan and another director entering into shareholder agreements to vote in favor of the proposed merger.
• Mr. Immelt, GE Medical Systems President and CEO, stated that the future success of healthcare is centered around productivity, and MECON has built a strong business around driving clinical and operational efficiency for health systems.
• Vasu R. Devan, MECON's Chairman, President, and Chief Executive Officer, acknowledged that MECON's shareholders, customers, and employees will benefit from this merger.

Statistics:

• The transaction price of $11.25 per share represents a significant premium for MECON shareholders.
• MECON's operations will be merged with GE Medical, creating a leading provider of internet-based healthcare productivity solutions.
• The acquisition is expected to close by February 2000, with the boards of directors of both GE and MECON approving the merger.
• The combined company will have a significant impact on the healthcare industry, with a focus on productivity and efficiency.
• MECON's family of Internet-based benchmarking data, software products, and consulting services identifies opportunities for improvement, fixes problem areas, and sustains high levels of performance.

Sources:

• MECON, Inc. press release, Nov. 29
• GE Medical Systems press release, Nov. 29
• "GE Medical Systems Signs Definitive Agreement to Acquire MECON, Inc." PRNewswire, Nov. 29