November 26, 2007 06:41 AM | Press Release
Boston, MA – November 26, 2007 – Covington Associates LLC announced today it has acted as advisor to Inverness Medical Innovations (AMEX: IMA) in its agreement to acquire ParadigmHealth (“Paradigm”), a leading provider and integrator of care and disease management services for acutely ill and clinically complex patients, including neonatal intensive care and oncology patients. The transaction is structured as an all cash deal, with a purchase price of approximately $230 million. This is the 8th transaction that Covington Associates has advised Inverness on in 2007, representing over $4 billion in transaction value.
ParadigmHealth, headquartered in Upper Saddle River, NJ, is a leading provider of disease management services for intensive and clinically complex patients. The company improves the lives of patients and their families by utilizing their Systematic Care Management (SM) process and focuses on the identification, risk stratification, triage and onsite management of the highest cost and most clinically complex medical events. Inverness anticipates that there will be many synergies and opportunities for collaboration between Paradigm and Inverness’ recent acquisition of Alere Medical.
Commenting on the transaction, Ron Zwanziger, CEO of Inverness, said “”The acquisition of ParadigmHealth is a significant step in our strategy to become a leader in disease and health management services. When combined with our prior acquisitions of QAS and Alere, ParadigmHealth will contribute to our goal of enabling individuals to manage their health effectively.”
“The Alere and Paradigm models are complementary, with Paradigm focusing on an on-site care delivery model to complement Alere’s remote patient monitoring model. Covington has worked with all three companies in the past and is pleased to have been a part of this deal process” said Tom Cibotti, Managing Director at Covington Associates.
Closing is conditioned on clearance under the Hart-Scott Rodino Act, approval by ParadigmHealth’s stockholders, and other customary closing conditions.
By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life. A global leader in rapid point-of-care diagnostics, Inverness’ products, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women’s health. Inverness is headquartered in Waltham, Massachusetts.
For additional information, visit www.invernessmedical.com.
ParadigmHealth is a provider and integrator of care and disease management services for health plans and employers. The company’s care management services and innovative technologies work in concert to improve quality and lower costs by matching the appropriate information and intervention with the individual needs of patients and families. ParadigmHealth’s services focus on the management of premature and medically complex neonates and patients with late-stage cancer, end-of-life care issues, multiple co-morbidities, and severe trauma.
For additional information, visit www.paradigmhealth.com.
IMI HAS ACQUIRED PARADIGM