Business
Neoforma acquired by rival seller
NEWS IN BRIEF — Posted Nov. 7, 2005
Global Healthcare Exchange LLC, an online seller of medical supplies, announced Oct. 11 that it had agreed to acquire its struggling rival, Neoforma, for about $200 million. Under the agreement, shareholders except VHA and the University HealthSystem Consortium will receive $10 in cash for each share of common stock they own.
VHA, which owns 8.6 million shares or about 42%of Neoforma, will receive $10 for about 2 million shares and exchange the remainder for a 12% stake in GHX, in Westminster, Colo. UHC will sell 496,000 out of the 2.1 million shares it owns at $10 each and exchange the remainder for 2.9% of GHX's stock. GHX's acquisition of San Jose, Calif.-based Neoforma, which put itself up for sale in January, is expected to close in early 2006.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/11/07/bibf1107.htm.












