QUALITY SYSTEMS, INC. (NASDAQ:QSII) Files An 8-K Regulation FD DisclosureItem 7.01
On August16, 2017, Quality Systems, Inc. (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit99.1, announcing the closing of its acquisition of EagleDream Health Inc. (“EDH”), to that certain Agreement and Plan of Merger (the “Agreement”), dated as of July31, 2017, by and among the Company, Peacock Merger Sub, Inc., a wholly owned subsidiary of the Company (“Merger Sub”), EDH and Algimantas K. Chesonis, in the capacity of Securityholders’ Representative (as defined in the Agreement).
The information contained in this Item 7.01 of Form 8-K (including Exhibit 99.1 attached hereto) is being furnished and shall not be deemed to be “filed” for the purpose of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
On August16, 2017, the Company completed its acquisition of EDH to the Agreement. In accordance with the Agreement, the Company purchased all of the issued and outstanding equity interests in EDH for an aggregate purchase price of $26million in cash, subject to certain adjustments in accordance with the terms of the Agreement.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to, and should be read in conjunction with, the full text of the Agreement, a copy of which is filed as Exhibit2.1 to the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on August1, 2017, and is incorporated herein by reference. The Agreement and the foregoing description of the Agreement have been included to provide investors and shareholders with information regarding the terms of the Agreement. They are not intended to provide any other factual information about the Company, Merger Sub or EDH. The representations, warranties and covenants contained in the Agreement were made only as of specified dates for the purposes of the Agreement, were solely for the benefit of the parties to the Agreement, and may be subject to qualifications and limitations agreed upon by such parties. In particular, in reviewing the representations, warranties and covenants contained in the Agreement, it is important to bear in mind that such representations, warranties and covenants were negotiated with the principal purpose of allocating risk between the parties to the Agreement, rather than establishing matters as facts. Such representations, warranties and covenants may also be subject to a contractual standard of materiality different from those generally applicable to shareholders and reports and documents filed with the U.S. Securities and Exchange Commission, and are also qualified in important part by a confidential disclosure schedule delivered by EDH to the Company in connection with the Agreement. Investors and shareholders should not rely on such representations, warranties and covenants as characterizations of the actual state of facts or circumstances described therein. Information concerning the subject matter of such representations, warranties and covenants may change after the date of the Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures.
| Item 7.01 | Financial Statements and Exhibits. |
(d)Exhibits
|
Exhibit No. |
Description |
| 99.1 | Press Release dated August16, 2017. |
2
QUALITY SYSTEMS, INC ExhibitEX-99.1 2 d435175dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE NEXTGEN HEALTHCARE COMPLETES ACQUISITION OF EAGLEDREAM HEALTH INC. Irvine,…To view the full exhibit click here
About QUALITY SYSTEMS, INC. (NASDAQ:QSII)
Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.