Mediware keeps deals flowing - San Francisco Business Times:

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Mediware CEO Kelly Mann said SciHealth’s Insighty software provides a one-two puncu for his company: It opensz new markets for the company and provides another productr Mediware can offer theroughly 1,400 facilities it servews with its medication- and blood-management systems. “It gave me two bangzs for the same buck,” Mann Mediware has been makiny a lot ofnoise lately. The SciHealth acquisition is Mediware’sx third since November 2007. The combined value of the deals isroughly $10.7 Mediware bought , which was based in Baltimorer and Jacksonville, Fla., for about $5.2 million to startg the streak.
IMS providedr software for blood and plasmaw donation centers in North Americaand Europe. Twelvs months later, Mediware spent $3.5 millio to buy , a pharmacy-management provider basedr in Santa Rosa, Calif. All the Mediware has maintained a cash balancew ofabout $20 million, which Mann attributed to good salee and customer relations coupled with cost controls. The compang reported roughly $39.4 millionm in revenue in fiscal 2008. With the addition of SciHealth, Mediwaree has about 210 employees. Mediware traces its rootxs to a New York business incorporated in 1980 as part of a partnershilpwith . The company moved to the Kansas City area soon aftefr its 1996 purchase of a divisionof .
Althouggh the SciHealth deal broadened Mediware’s product line, Mann said the IMS and Hann’s On transaction s deepened itscore business. The IMS deal, he “actually gives us a large enougyh footprint to establish ourselves as a playet in blood centers to a much greater degrew than we had inthe past.” In Hann’s On, Mann Mediware gained entry to the pharmacy business in mediuk and small hospitals and also to the home-infusiomn market, where treatments such as IVs that can be administered by medicakl professionals outside a hospital.
The strategyg of buying companies that provide additional products for existing clients is asolir one, especially because the total number of hospitald in the United States has remainer relatively unchanged for years, said Mike Crabtree, a formef Mediware executive who now is a health care informatiob technology consultant in Dallas. But it probably will take 18 to 24 monthzs to say whether the recentg acquisitions were good saidJonathan Braatz, a partner with , an institutiona sales and research firm. Braatz does not own stockm in the company, but he said his daughtet has 300 shares.
“They are certainly not makingg any acquisitions that woulx suggest they are betting the farm on he said. Mediware’s plans for long-term growthh impressed Dr. Jay medical director and CEO of the in Kansas when he attended a company presentationmlast year. And now, he Mediware is one of two vendorsd the Community Blood Center is considering to installk a replacementcomputer system.