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Harris Corporation to Acquire Carefx -- A Leading Provider of Healthcare Interoperability Workflow Solutions
- Acquisition will expand Harris' ability to provide "trusted solutions at the intersection of life and data" to government and commercial healthcare providers
- Carefx solution suite used by more than 800 hospitals, healthcare systems and health information exchanges across North America, Europe and Asia
- FusionfxTM platform gives caregivers a unified view of patient data -- reducing errors and increasing productivity
MELBOURNE, FL/SCOTTSDALE, AZ, February 22, 2011 - Harris Corporation (NYSE:HRS), an international communications and information technology company, has entered into a definitive agreement to acquire privately held Carefx Corporation, a leading provider of interoperability workflow solutions built on its popular Fusionfx platform. The acquisition will expand Harris' capabilities in government healthcare, provide an entry into the commercial healthcare market, and strengthen its overall position as a leading provider of interoperability solutions.
Founded in 2002, Carefx is headquartered in Scottsdale, Arizona and has nearly 250 employees worldwide. The company's Fusionfx platform is an interoperable, intuitive solution suite that incorporates the latest standards-based technologies and industry best practices to streamline retrieval, access and use of patient information. Fusionfx aggregates patient information across existing systems and delivers it in a single, clear, clinically relevant view to physicians at the point of care -- enabling them to offer a more consistent, higher quality experience for the patient, reducing clinical errors and increasing individual productivity.
The Fusionfx platform is used in more than 800 hospitals, healthcare systems, and health information exchanges across North America, Europe and Asia. Carefx customers include the Boston Medical Center, Emory University Hospital, Northwestern Medical Hospital, the Louisiana Rural Health Information Exchange, Johns Hopkins Health System and Cambridge University Hospitals.
Carefx also partners with the industry's leading infrastructure and healthcare information technology vendors, including Cerner, GE Healthcare, IBM and Oracle.
"This acquisition will enable Harris to provide an expanded range of interoperability solutions to both government and commercial healthcare providers," said Howard L. Lance, chairman, president and chief executive officer, Harris Corporation. "Carefx serves high-growth markets. Their product suite and sales channels will position Harris to deliver trusted, comprehensive workflow integration that ultimately leads to better care and lower healthcare costs."
"Carefx has been transforming the way hospitals and healthcare providers achieve interoperability between disparate systems - and achieve federal requirements for Meaningful Use," said Jim Traficant, vice president and general manager, Harris Healthcare Solutions. "By giving clinicians the information they need - where and when they need it - the Fusionfx solution suite creates a seamless end-user experience."
Under the terms of the agreement, Harris will purchase Carefx for $155 million in cash, subject to post-closing adjustments. The acquisition of Carefx is subject to customary closing conditions and is expected to close in the fourth quarter of fiscal year 2011. Harris will finance the acquisition using a combination of cash on hand and commercial paper. Raymond James & Associates acted as financial advisor to Carefx in this transaction.
Harris has provided interoperability solutions for large-scale health information exchange enterprises such as the Department of Veterans Affairs, the Department of Defense, and the Social Security Administration. Harris also has effectively extended federal interoperability solutions to the private sector where over half of all care is provided for active duty and retired service members. In addition, Harris was recently selected to create the Florida statewide health information exchange (HIE) to enable greater interoperability among care providers across the state.
Harris provides a range of healthcare enterprise intelligence solutions and services for commercial and government customers, including interoperability, imaging, managed services infrastructure, systems and cyber integration, and informatics. Harris products, systems, and services improve health outcomes by ensuring that the right information is delivered with security and privacy to the right person, on the right device, at the point of care.
About Harris Corporation
Harris is an international communications and information technology company serving government and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has approximately $5 billion of annual revenue and more than 16,000 employees - including nearly 7,000 engineers and scientists. Harris is dedicated to developing best-in-class assured communications® products, systems, and services. Additional information about Harris Corporation is available at www.harris.com.
Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this release include but are not limited to: anticipated timing of the closing of the acquisition of Carefx and satisfaction of the conditions to closing, the impact of the acquisition on Harris earnings, and statements regarding outlook, including revenue and growth opportunities. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The company's consolidated results and the forward-looking statements could be affected by many factors, including but not limited to: the loss of our relationship with the U.S. government or a shift in U.S. government funding; potential changes in U.S. government or customer priorities; risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; financial and government and regulatory risks relating to international sales and operations; our ability to continue to develop new products that achieve market acceptance; the consequences of future geo-political events; strategic acquisitions and the risks and uncertainties related thereto, including our ability to manage and integrate acquired businesses; performance of our subcontractors and suppliers; potential claims that we are infringing the intellectual property rights of third parties; the successful resolution of patent infringement claims and the ultimate outcome of other contingencies, litigation and legal matters; risks inherent in developing new technologies; changes in our effective tax rate; the potential impact of natural disasters or other disruptions on our operations; the potential impact of a security breach, through cyber attack or otherwise, or other significant disruptions of our IT networks and systems or those we operate for customers; the potential impact of satellite bandwidth constraints on our managed satellite communications services; changes in future business conditions that could cause business investments and/or recorded goodwill to become impaired; and the recession in the United States and general downturn in the global economy. Further information relating to factors that may impact the company's results and forward-looking statements are disclosed in the company's filings with the SEC. The forward-looking statements contained in this release are made as of the date of this release, and the company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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