Omnicell (OMCL) to Acquire Ateb for $41M
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Omnicell, Inc. (NASDAQ: OMCL) signed an agreement to acquire Ateb, Inc., together with its Canadian affiliate, Ateb Canada Ltd. With a demonstrated history of growth, Ateb is the industry's leading provider of pharmacy-based patient care solutions and medication synchronization to independent and chain pharmacies. The shared portfolio supports the Omnicell mission of increasing patient access to medication adherence solutions to simplify management of chronic conditions, with the goal of improving outcomes.
When implementing an adherence pharmacy, pharmacists must lay the groundwork by synchronizing medication refills for patients, which requires a software platform. Medication synchronization involves the pharmacist coordinating the refill medications so patients can pick them up on a single day each month. This is a necessary precursor to additional adherence tools, and has historically been a barrier to adoption of multi-medication blister packaging. The incorporation of Ateb's Time My Meds®, an integrated medication synchronization solution that improves pharmacy performance, provides the foundation for the appointment-based model of medication refill pickup and consultation. For pharmacies that are investing in adherence programs, synching medication refills is often the first step in scaling their programs and taking more ownership in patient care and outcomes.
The number of Americans affected by at least one chronic condition requiring medication therapy is expected to increase to 157 million by 2020.1 To help this growing patient population manage its conditions, outpatient pharmacists are investing in adherence solutions, including medication therapy management, medication synchronization, and adherence packaging. By combining Ateb's expertise in medication synchronization with Omnicell's adherence packaging, this partnership will enable outpatient pharmacists to more easily establish and scale their adherence programs, as patients look for additional support in managing their conditions.
"This acquisition demonstrates Omnicell's commitment to supporting the growing shift in how patients receive services along the entire continuum of care, elevating the role of pharmacists in improving overall patient safety and outcomes," said Rob Seim, president of Global Automation and Medication Adherence at Omnicell. "Ateb's solutions are currently provided to over 15,000 pharmacies in the U.S. and Canada, and for a quarter of a century the company has been helping pharmacists—who are the most visible and accessible care providers in the community—fulfill their mission of serving patients."
"As the leader in helping pharmacies develop synchronization programs that improve the health of their patients, we believe today's announcement will help our customers continue to grow their adherence programs for the benefit of their patients," shared Frank Sheppard, president and CEO of Ateb, Inc. "This integration creates a clear path between the various stages of successful adherence programs and is an instrumental step in making these offerings a more routine and expected component of outpatient care."
Omnicell will acquire Ateb, Inc. for approximately $41 million, subject to certain adjustments, in an all cash transaction. Omnicell expects the transaction to close during the fourth quarter of 2016, subject to the satisfaction of customary closing conditions.
Ateb, Inc. recorded approximately $27 million of (unaudited) revenue during the 12-month period ended September 30, 2016. Omnicell expects the transaction to be accretive immediately on a Non-GAAP basis.
To finance the transaction, Omnicell will use available cash on hand and proceeds from its senior secured credit facility. A presentation describing the transaction will be available in the "Investor Relations" section of Omnicell's website at www.Omnicell.com.
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