Highlights:
• Acquisition will expand Harris' ability to provide
"trusted solutions at the intersection of life and data"
to government and commercial healthcare providers
• Carefx solution suite used by more than 800 hospitals,
healthcare systems and health information exchanges
across North America, Europe and Asia
• FusionfxTM platform gives caregivers a unified view of
patient data -- reducing errors and increasing
productivityMELBOURNE, FL/SCOTTSDALE, AZ, February 22, 2011 -
Harris Corporation (NYSE:HRS), an international
communications and information technology company, has
entered into a definitive agreement to acquire privately
held Carefx Corporation, a leading provider of
interoperability workflow solutions built on its popular
Fusionfx platform. The acquisition will expand Harris'
capabilities in government healthcare, provide an entry
into the commercial healthcare market, and strengthen
its overall position as a leading provider of
interoperability solutions.
Founded in 2002, Carefx is headquartered in
Scottsdale, Arizona and has nearly 250 employees
worldwide. The company's Fusionfx platform is an
interoperable, intuitive solution suite that
incorporates the latest standards-based technologies and
industry best practices to streamline retrieval, access
and use of patient information. Fusionfx aggregates
patient information across existing systems and delivers
it in a single, clear, clinically relevant view to
physicians at the point of care -- enabling them to
offer a more consistent, higher quality experience for
the patient, reducing clinical errors and increasing
individual productivity.
The Fusionfx platform is used in more than 800
hospitals, healthcare systems, and health information
exchanges across North America, Europe and Asia. Carefx
customers include the Boston Medical Center, Emory
University Hospital, Northwestern Medical Hospital, the
Louisiana Rural Health Information Exchange, Johns
Hopkins Health System and Cambridge University
Hospitals.
Carefx also partners with the industry's leading
infrastructure and healthcare information technology
vendors, including Cerner, GE Healthcare, IBM and
Oracle.
"This acquisition will enable Harris to provide an
expanded range of interoperability solutions to both
government and commercial healthcare providers," said
Howard L. Lance, chairman, president and chief executive
officer, Harris Corporation. "Carefx serves high-growth
markets. Their product suite and sales channels will
position Harris to deliver trusted, comprehensive
workflow integration that ultimately leads to better
care and lower healthcare costs."
"Carefx has been transforming the way hospitals and
healthcare providers achieve interoperability between
disparate systems - and achieve federal requirements for
Meaningful Use," said Jim Traficant, vice president and
general manager, Harris Healthcare Solutions. "By giving
clinicians the information they need - where and when
they need it - the Fusionfx solution suite creates a
seamless end-user experience."
Under the terms of the agreement, Harris will
purchase Carefx for $155 million in cash, subject to
post-closing adjustments. The acquisition of Carefx is
subject to customary closing conditions and is expected
to close in the fourth quarter of fiscal year 2011.
Harris will finance the acquisition using a combination
of cash on hand and commercial paper. Raymond James &
Associates acted as financial advisor to Carefx in this
transaction.
Harris has provided interoperability solutions for
large-scale health information exchange enterprises such
as the Department of Veterans Affairs, the Department of
Defense, and the Social Security Administration. Harris
also has effectively extended federal interoperability
solutions to the private sector where over half of all
care is provided for active duty and retired service
members. In addition, Harris was recently selected to
create the Florida statewide health information exchange
(HIE) to enable greater interoperability among care
providers across the state.
Harris provides a range of healthcare enterprise
intelligence solutions and services for commercial and
government customers, including interoperability,
imaging, managed services infrastructure, systems and
cyber integration, and informatics. Harris products,
systems, and services improve health outcomes by
ensuring that the right information is delivered with
security and privacy to the right person, on the right
device, at the point of care.
About Harris Corporation
Harris is an international communications and
information technology company serving government and
commercial markets in more than 150 countries.
Headquartered in Melbourne, Florida, the company has
approximately $5 billion of annual revenue and more than
16,000 employees - including nearly 7,000 engineers and
scientists. Harris is dedicated to developing
best-in-class assured communications® products, systems,
and services. Additional information about Harris
Corporation is available at
www.harris.com.
Forward-Looking Statements
Statements in this press release that are not historical
facts are forward-looking statements that reflect
management's current expectations, assumptions, and
estimates of future performance and economic conditions.
Such statements are made in reliance upon the safe
harbor provisions of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements in this release
include but are not limited to: anticipated timing of
the closing of the acquisition of Carefx and
satisfaction of the conditions to closing, the impact of
the acquisition on Harris earnings, and statements
regarding outlook, including revenue and growth
opportunities. The company cautions investors that any
forward-looking statements are subject to risks and
uncertainties that may cause actual results and future
trends to differ materially from those matters expressed
in or implied by such forward-looking statements. The
company's consolidated results and the forward-looking
statements could be affected by many factors, including
but not limited to: the loss of our relationship with
the U.S. government or a shift in U.S. government
funding; potential changes in U.S. government or
customer priorities; risks inherent with large long-term
fixed-price contracts, particularly the ability to
contain cost overruns; financial and government and
regulatory risks relating to international sales and
operations; our ability to continue to develop new
products that achieve market acceptance; the
consequences of future geo-political events; strategic
acquisitions and the risks and uncertainties related
thereto, including our ability to manage and integrate
acquired businesses; performance of our subcontractors
and suppliers; potential claims that we are infringing
the intellectual property rights of third parties; the
successful resolution of patent infringement claims and
the ultimate outcome of other contingencies, litigation
and legal matters; risks inherent in developing new
technologies; changes in our effective tax rate; the
potential impact of natural disasters or other
disruptions on our operations; the potential impact of a
security breach, through cyber attack or otherwise, or
other significant disruptions of our IT networks and
systems or those we operate for customers; the potential
impact of satellite bandwidth constraints on our managed
satellite communications services; changes in future
business conditions that could cause business
investments and/or recorded goodwill to become impaired;
and the recession in the United States and general
downturn in the global economy. Further information
relating to factors that may impact the company's
results and forward-looking statements are disclosed in
the company's filings with the SEC. The forward-looking
statements contained in this release are made as of the
date of this release, and the company disclaims any
intention or obligation, other than imposed by law, to
update or revise any forward-looking statements, whether
as a result of new information, future events, or
otherwise.
Marc Raimondi
Harris Corporation - Washington, D.C.
marc.raimondi@harris.com
202-729-3732
Jim Burke
Harris Corporation
jim.burke@harris.com
321-727-9131
Christian Pinkston
The Pinkston Group - Washington, D.C.
pinkston@pinkstongroup.com
202-423-6611
Christopher Capot
KNB Communications
ccapot@knbpr.com
203-379-8019
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