Netsmart Technologies, Parent Company of Creative Socio-Medics, Acquires CMHC Systems of Dublin, Ohio
September 29 2005 - 9:00AM
PR Newswire (US)
Creative Socio-Medics and CMHC Systems will operate as Netsmart
Technologies, Inc. GREAT RIVER, N.Y., Sept. 29 /PRNewswire/ --
Netsmart Technologies, Inc. (Great River, New York), a leading
supplier of enterprise-wide software solutions for health and human
services providers through its wholly-owned subsidiary, Creative
Socio-Medics Corp., today announced the successful closing of its
acquisition of CMHC Systems, Inc., Dublin, Ohio. Founded in 1978,
CMHC Systems delivers full suites of behavioral healthcare
information management software for mental health, substance abuse,
and addiction services agencies, developmental disability centers,
and behavioral health-related managed care organizations. Netsmart
Technologies also announced today that CMHC Systems and Creative
Socio-Medics will operate as one company under the name Netsmart
Technologies, Inc. James Conway, CEO of Netsmart, said, "The
acquisition effectively unites the resources of two of the largest
information technology solutions providers in health and human
services. The combined operation is expected to have gross revenue
in excess of $50 million of which the recurring revenue portion is
approximately $28 million. The new entity consists of over 1,000
human services providers serving approximately 40,000 professional
users consisting of psychiatrists, clinicians and case managers.
Netsmart's products lead several sectors of the market and our
customers include 33 state operated services, 458 county &
community agencies and over 400 methadone clinics. This network of
human services providers offers an opportunity to create an
integrated health care record supporting interoperability of
systems between state behavioral health and community based
programs." "At Netsmart Technologies, we believe that our solutions
improve the quality of life for millions of people," explained
Conway. "Approximately one out of four families is affected at some
time by mental health issues, such as substance abuse or
depression. In short, Netsmart Technologies enriches the
communities in which we all live and work, and we're very proud of
that contribution." Netsmart intends to leverage the capabilities
of CMHC Systems while continuing to provide support for the entire
range of CMHC and Creative products. It is anticipated that future
product development will be done to integrate the product roadmaps
of both companies and will include enhancements to existing
products. Conway emphasized that the acquisition provides customers
with a trusted partner now and into the future. "Netsmart
Technologies will protect customers' investments while creating
opportunities that were previously unavailable," he stated. "By
combining forces and talent, we expect to have a greater depth of
experience and better positioned to offer long-term technology
solutions. We are very excited by the possibilities that lie ahead
and look forward to serving an expanded community of agencies with
proven solutions for all modalities of care." About Netsmart
Technologies, Inc. Netsmart Technologies, Inc., based in Great
River, N.Y., is an established, leading supplier of enterprise-wide
software solutions for health and human services providers, now
with over 1250 clients, including 30 systems with state agencies.
Netsmart's clients include health and human services organizations,
public health agencies, mental health and substance abuse clinics,
psychiatric hospitals, and managed care organizations. Netsmart's
products are full-featured information systems that operate on a
variety of operating systems, hardware platforms, and mobile
devices, and offer unlimited scalability. Statement on Behalf of
Netsmart Technologies, Inc. Statements in this press release may be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as
"anticipate," "believe," "estimate," "expect," "intend" and similar
expressions, as they relate to the company or its management,
identify forward-looking statements. These statements are based on
current expectations, estimates and projections about the company's
business based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may, and probably will,
differ materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, including those
described above and those risks discussed from time to time in
Netsmart's filings with the Securities and Exchange Commission. In
addition, such statements could be affected by risks and
uncertainties related to product demand, market and customer
acceptance, competition, pricing and development difficulties, as
well as general industry and market conditions and growth rates,
and general economic conditions. Any forward-looking statements
speak only as of the date on which they are made, and the company
does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
release. Information on Netsmart's or Creative's website do not
constitute a part of this release. DATASOURCE: Netsmart
Technologies, Inc. CONTACT: Ron Marge, Netsmart Technologies,
1-800-421-7503, ext. 2026, ; Stuart Fine, Carpe DM, Inc.,
+1-908-490-0075, Web site: http://www.netsmartech.com/
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