Message #7 From:
NewsBot Date: September 21, 2005 02:00:00 AM
BGAT News Bluegate Acquires the Business of Trilliant Corporation
HOUSTON--(BUSINESS WIRE)--Sept. 21, 2005--Bluegate Corp. (OTCBB:BGAT), a provider of healthcare IT outsourcing and managed security solutions, announced today it has acquired the business of Houston-based Trilliant Corporation (Trilliant) in a strategic move that is expected to make the combined entities a strong competitor in the technology management industry.
Trilliant's business consists of professional services providing assessment, design, vendor selection, procurement and project management for large technology initiatives. The business is capable of providing any or all of these services for voice and/or data networks, data centers and business applications. Its services are offered to public and private sector entities and are specialized for healthcare-integration applications, including medical accounting, enterprise gateways for disparate systems, clinical information systems and computerized physician order entry.
With the closing on September 15, Bluegate, through a newly formed, wholly-owned subsidiary named Trilliant Technology Group, Inc. (TTG), acquired substantially all of the assets of Trilliant for a purchase price consisting of an initial stock payment of 151,065 shares of Bluegate's common stock, an earn-out pursuant to which an additional 827,160 shares could be earned depending on the acquired business' revenues over the next two years, a short-term promissory note in the original principal amount of $136,033, future royalty payments based on certain software acquired in connection with the transaction and the assumption of certain ongoing contractual obligations.
The Trilliant acquisition is expected to improve Bluegate's bottom line with Trilliant on track for approximately $1.3 million of gross revenue in the next 12 months and with the consolidation of the two organizations' back-office functions.
William (Bill) Koehler, who prior to the acquisition was the President of Trilliant and a member of Bluegate's board of directors, will now be President and Chief Operating Officer of the combined companies. The new TTG subsidiary will function as an independent consulting organization.
"We believe that this is an ideal fit," said Manfred Sternberg, CEO of Bluegate, noting that Bluegate and Trilliant should fuel each other's growth. "As Bluegate adds services and products to its suite of offerings and secures large-scale projects with medical facilities and their physicians, Trilliant will provide the project leadership to steward those engagements to success. Trilliant's experience at technology procurement also will tend to assure that Bluegate purchases of the bandwidth, hardware and software it offers to its customers will be at the best rates and that the vendors providing that equipment and those services are properly contracted to perform the work."
"Trilliant's knowledge base in applications software, particularly in the healthcare arena, should place Bluegate in a strong position to understand how medical facilities, specialty hospitals, regional expansions for healthcare systems and, most importantly, doctors interface into the hospital and medical information systems that will drive the future of healthcare," Mr. Koehler said.
With no staff terminations anticipated due to the acquisition, Koehler said he expects the staff of both organizations will work particularly well together, each enhancing the breadth and depth of their joint abilities. Through the acquisition, Bluegate adds engineering depth, project management, procurement specialists, technology contract negotiators, infrastructure design and management experts, software and business analysts, software programmers and applications integration specialists.
About Bluegate
Bluegate Corp. provides IT outsourcing and managed security solutions for the healthcare industry to enable secure, HIPAA-compliant data communication between hospitals, medical facilities and physician practices -- ultimately enhancing patient care. Bluegate also provides affordable access to compatible medical-focused content and applications over the infrastructure to improve practice efficiency and service. Bluegate extends IT best practices to the edge of the healthcare network ensuring every physician and facility they touch is as secure as the hospital itself. Bluegate is publicly traded on the over the counter bulletin board under the ticker BGAT. For information, visit www.bluegate.com or call 713-686-1100.
Safe Harbor
This press release may contain "forward-looking statements." All statements, other than statements of fact, included in this release and without limitation statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.
