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TECHNOLOGY & TELECOMMUNICATIONS | BRIEFLY

British Group to Buy Medic Computer System

September 06, 1997|Reuters

Misys, a fast-growing computer software supplier based in London, said it is acquiring Medic Computer System Inc. for nearly $1 billion, giving it a toehold in the $12-billion health-care information market in the United States. The British group, which has built up a sound track record with a series of acquisitions over the last five years, said it will pay $35 a share for Raleigh, N.C.-based Medic, or about $923 million. Medic is one of the five largest health-care information technology groups in the U.S. The deal would provide a safe haven for Medic, which has come under intense scrutiny since its stock plunged 50% in March in response to a warning about disappointing earnings. Misys Chairman Kevin Lomax said the deal will boost earnings starting a year after completion, which is expected in mid-October. Medic's management team would remain within Misys for at least three years, Misys said. Misys supplies secure software packages, mainly to banks and insurers, and has become one of the world's largest software companies after buying trading firms throughout the world. Medic's stock price rose $1.56 to close at $34.06 on Nasdaq.

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