North Vancouver-based Open EC Technologies Inc. (TSX-V:OCE) plans to acquire a Texas-based transaction services company for US$1.4 million.
Open EC has signed a letter of intent to acquire San Antonio, Texas-based i-Plexus Solutions Inc. The acquisition, if successful, will strengthen the company’s recurring transaction services business and substantially grow the company’s market share in the U.S. healthcare industry.
I-Plexus provides an Internet-based medical claims clearing house and billing service solutions, supplying ongoing and recurring medical claims transaction services to approximately 5,500 doctors in 1,000 healthcare organizations throughout the U.S.
Open EC said i-Plexus has reported, on average, a 42% increase in recurring subscription and transaction revenue growth during the last five years, with the company reporting positive cash flow since 2008.
Open EC president Martyn Armstrong said, “Our business plan is to aggressively develop our organic business of software, software-as-a-service and transaction services, and use targeted acquisitions to step up our revenue.”
Open EC’s purchase price of i-Plexus includes US$800,000 in cash, US$400,000 in vendor take-back debt; 750,000 Open EC trading escrow shares with a deemed price of $0.15 per share; 1.5 million Open EC warrants with an exercise price of $0.18 per share and US$100,000 to be earned if certain conditions are met.
Open EC’s share price range during the past week: between $0.06 and $0.075; 52-week high: $0.195; 52-week low: $0.03.