Netsmart Technologies Acquires CMHC Systems for Approximately $13 Million

Strategic Insights -

Netsmart Technologies, Inc. has announced the acquisition of Dublin, Ohio-based CMHC Systems, Inc. for approximately $13 million in cash and 435,730 shares of Netsmart common stock. This acquisition further solidifies Netsmart's position as a leading supplier of enterprise-wide software solutions for health and human services providers. Founded in 1978, CMHC Systems delivers full suites of behavioral healthcare information management software for mental health, substance abuse, and addiction services agencies.

Key Takeaways:

  • Netsmart Technologies, Inc. has acquired CMHC Systems, Inc. for approximately $13 million in cash and 435,730 shares of Netsmart common stock.
  • CMHC Systems delivers full suites of behavioral healthcare information management software for mental health, substance abuse, and addiction services agencies.
  • The acquisition is expected to positively impact health and human services providers by expanding and building upon the strengths of the two organizations.
  • Netsmart's customer base exceeds that of any of its competitors, with over 1,000 clients, including 30 statewide systems.
  • Netsmart has realized 28 consecutive quarters of profitability.
  • The acquisition will provide long-term technology solutions for Netsmart's clients.
  • The integration of CMHC Systems will be completed by the end of September 2005.
  • The transaction is subject to certain conditions.
  • Netsmart Technologies, Inc. has over 1000 clients, including 30 systems with state agencies.

Statistics:

  • Netsmart Technologies, Inc. has acquired CMHC Systems, Inc. for approximately $13 million.
  • The acquisition includes 435,730 shares of Netsmart common stock.
  • Netsmart has over 1,000 clients, including 30 statewide systems.
  • Netsmart's customer base exceeds that of any of its competitors.
  • Netsmart has realized 28 consecutive quarters of profitability.
  • tens of millions of people are touched by some form of the Netsmart product suite.

Sources:

  • Netsmart Technologies, Inc.
  • Creative Socio-Medics Corp.
  • CMHC Systems, Inc.
  • William Blair & Company
  • Griffin Securities, Inc.