Some really big news dropping yesterday that Pulse and Cegedim Healthcare Software (CHS) (a European company) were merging. As part of the merger, Pulse is getting a $13.5 million capital infusion.
I’ve been very interested in what the future of Pulse would be after meeting with them at HIMSS. This looks like a good step forward for them and a nice infusion of money to be able to really attack the US EMR market full on.
I think this also illustrates the potential market opportunity that’s available for EMR vendors. I’ll be interested to see what Pulse is able to do with all the cash. Hopefully, they’ll use a very small part of it to advertise on the EMR and HIPAA & EMR and EHR websites.
As is usually the case with mergers and acquisitions of EMR vendors, the next question is what’s going to happen with the company and the software product after the merger. Seems like this is mostly just an investment by the Cegedim Group in the US market and not about merging and sunsetting product lines. Looks like Pulse will continue to operate as it has in the past, but with a bunch more money in the bank.
Here’s the letter from Pulse President and CEO, Basil Hourani, that was sent to Pulse clients:
I am pleased to announce the strategic investment and merger of Pulse and Cegedim Healthcare Software (CHS) – a division of Cegedim Group. Through the merger, Pulse will continue to operate independently with our existing management team, personnel, locations, products and services. As part of the transaction, Pulse received a $13.5 Million capital infusion which will immediately provide capital to accelerate aggressive growth of our Electronic Health Record (EHR) and Practice Management (PM) solutions as well as development of next generation Pulse products including our web-based solutions. Pulse growth plans include the addition of more than 350 new employees in all departments by the end of 2012 and additional offices in key expansion markets.
CHS is the European leader in medical software including EHR products geared to the European markets. CHS currently serves 119,000 physicians and 16,000 pharmacies in Europe but does not have any medical software presence in the US. The Pulse existing and future products and services will serve as the platform for the US markets going forward.
We are very pleased and energized about the investment in the Pulse solution. It is recognition that our EHR and PM software is a future-ready solution and the right platform. This investment strengthens our ability to continue Pulse’s strong momentum and record setting growth that we have been experiencing, and take advantage of the expected growth in the healthcare IT market fueled by the unprecedented government incentives.
As you have always been accustomed, you will continue to enjoy the personal service and support from Pulse management and personnel. Pulse will continue to be headquartered in Wichita, KS with offices in; Boston, MA, Dallas, TX, and Kansas City, MO. We look forward to our mutually beneficial continued relationship with you and thank you for your patronage.
President and Chief Executive Officer
Pulse Systems, Inc.