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Direct Medical Data’s Sale to Aptilon Holdings Inc.

Transaction Details

Client: Direct Medical Data, LLC develops, markets and sells software applications that extract the value from healthcare provider databases which are licensed, sourced, or owned by the Company
Ownership: Three partners with 80+ years combined industry experience
Buyer: Aptilon Holdings Inc. is Canadian public company (TSX:APZ) that provides e-marketing solutions designed for the pharmaceutical and healthcare industry
Transaction: Aptilon acquired 100% of the assets of DMD and an affiliated company
Consideration: Cash, debt and stock

Situation Review

  • The Partners acquired the non-performing data processing division of Acxiom Corp. and grew revenues from $1.5 million to $9.2 over 7 years.
  • KGI was engaged to create liquidity for the Partners so two of the three could retire

Transaction Process

  • KGI prepared a Confidential Information Memorandum and contacted over 100 prospective buyers.
  • A dozen offers were submitted and management meetings were conducted with select prospects.
  • The Partners ultimately closed a deal with the buyer who offered the best combination of economic, cultural and strategic fits.

Outcome

  • Intense negotiations resulted in an extraordinary outcome for the Client.
  • The Company continues to operate under Aptilon Holdings