Ortivus (STO:ORTIA) (STO:ORTIB) is now implementing its strategy to streamline its core operations into a clear focus on advanced mobile and clinical decision support for modern medical care. Consequently its North American subsidiaries, which provide administrative systems primarily for ambulance services, have been sold to an American company - TriTech Software Systems.
In line with its established strategy to concentrate activities to its core operations i.e. the development and sale of products and services for mobile clinical decision support for medical care, Ortivus has now sold its U.S. subsidiaries. These companies have, unlike other parts of Ortivus, focused on the sale of management systems for police, fire and ambulance services.
"This business deal moves Ortivus one important step forward towards fully operating and developing its core operations. Health sector interest in mobile solutions as a way of enhancing efficiency and improving health outcomes is growing rapidly. Ortivus, with its unique combination of clinical expertise and sound experience from the development of mobile computing systems, is especially well equipped to meet these medical care needs," states Chair of the Board Jon Risfelt.
The buyer of the Ortivus North American subsidiaries is the US-based TriTech Software Systems which acquired 100 percent of the shares in Ortivus Inc. U.S. and Ortivus Inc. Canada. The purchase price is USD 11.5 million (approximately SEK 83 million). This transaction will initially provide Ortivus with a cash flow boost of approximately SEK 38 million, after allocating approximately SEK 10 million to escrow accounts for a period of 18 months, and repaying loans to the amount of SEK 29 million. Ortivus has thus become debt free.
The acquisition agreement was signed today, and is conditional on the approval of the company Extraordinary General Meeting. The transaction will be implemented during the first quarter of 2010.
Early bedtime boosts children's gut health by increasing beneficial bacteria