Company to focus on enterprise contract management solutions
Edison, N.J. — — July 21, 2003 — I-many Inc., an enterprise contract management solutions provider, announced today that it has signed an asset purchase agreement with supply chain management solutions provider Neoforma Inc. to sell I-many's Health & Life Sciences business for $20 million in cash and Neoforma common stock and an additional opportunity to earn up to $5 million in Neoforma common stock upon achievement of certain revenue targets.
I-many said the sale would enable it to focus on its position in the enterprise contract management solutions space and, at the same time, retain upside potential in the Health & Life Sciences business through equity participation in Neoforma.
The sale, which is subject to approval by I-many stockholders and satisfaction of other customary closing conditions, should be completed near the end of the third quarter of 2003.
"The sale of our Health & Life Sciences business to Neoforma is a winning proposition for I-many and its customers," said Leigh Powell, president and CEO of I-many. "Neoforma has demonstrated ability to manage an extensive network of hospital and supplier relationships. They have the industry focus, resources and knowledge to grow the business vertically, providing the necessary link between healthcare buyers and suppliers."
For fiscal year 2002 and the first quarter of 2003, I-many's Health & Life Sciences business generated $37.5 million and $6.5 million in revenue respectively. After the sale, excluding the results of the discontinued operations on a generally accepted accounting principles (GAAP) basis, I-many would have restated fiscal year 2002 revenue and first quarter 2003 revenue of $17.3 million and $4.6 million respectively. I-many will report the cumulative results of operations of the Health & Life Sciences business for all periods in discontinued operations after shareholder approval of the transaction.