Emageon terminates merger with HSS, receives escrow funds

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Image Source: Emageon
Healthcare IT developer Emageon has terminated its amended merger agreement with the New York City-based Health Systems Solutions (HSS), due to the latter's failure to receive all necessary financing on or before a designated closing date of Feb. 11.

The Birmingham, Ala.-based Emageon said it has received $9 million that had been placed in escrow with the Bank of New York Mellon by HSS in connection with the parties' merger agreement.

The escrowed funds became payable to Emageon when the merger was not consummated before the close of business on Feb. 11, according to the company.

Emageon said it will continue to evaluate its options in response to these developments.