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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 17, 1998
DAOU SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
0-22073 330284454
(Commission File Number) (IRS Employer Identification No.)
5120 Shoreham Place, San Diego, California 92122
(Address of principal executive offices, including zip code)
(619) 452-2221
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
The registrant incorporates by reference herein the press release dated
June 17, 1998, attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
(i) Exhibit 99.1
Press Release dated June 17, 1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: June 19, 1998 DAOU SYSTEMS, INC.
By: /s/ DANIEL J. DAOU
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Daniel J. Daou, President
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EXHIBIT 99.1
Contact:
Chris Caramanico
Corporate Director of Marketing
800.578.3268
[email protected]
www.daou.com
DAOU SYSTEMS MERGES WITH TECHNOLOGY MANAGEMENT, INC.
SAN DIEGO, June 17, 1998 -- DAOU Systems, Inc. (Nasdaq: DAOU) announced
today that it has entered into an agreement with Technology Management, Inc.,
(TMI) an Indianapolis-based strategic planning and information technology
consulting firm.
The equity value of the merger is stated at $22.5 million and will be
regarded as a pooling of interests merger. TMI will become a wholly-owned
subsidiary of DAOU and headquarters will be maintained in San Diego. As a
result of the merger, DAOU will now employ a staff of over 500 and will have
serviced over 1,300 clients.
The merger is a direct result of DAOU's overall business strategy to
widen service offerings to its healthcare client base. TMI will offer 24
years in application-based consulting and information technology strategic
planning expertise to DAOU's suite of IT services.
"We believe the merger is extremely strategic for the company as it puts
us one step closer in becoming the leader in information technology services
in healthcare," said Daniel Daou, President of DAOU Systems. "The addition of
TMI's services, which include strategic planning and application
implementation, will allow us to provide a unique, comprehensive solution to
our clients."
"We found that TMI and DAOU share the same set of business values. We
believe the synergy created by our combined resources will serve our current
and future clients better and more completely than any other technology
solution provider," said Vince Roach, President of TMI.
Following the merger, Mr. Roach will remain employed with DAOU. No
layoffs are expected to come out of the transaction.
Technology Management, Inc. is a provider of information technology
consulting services primarily to the healthcare industry. Its services
include executive counseling and education, management decision support,
information engineering, process improvement re-engineering, and project
management and implementation services. TMI's client base includes over 150
healthcare organizations such as various Kaiser Permanente Medical Care
Programs, Presbyterian Health Plan and Anthem, Inc.
DAOU Systems, Inc. provides information technology solutions to the
healthcare industry. In addition, the company designs, implements, and
manages voice, video, and data networks, combining its technological
expertise with its knowledge of the healthcare industry's specialized
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needs. DAOU offers an array of operational and Internet solutions as well.
DAOU's clients comprise more than half of the nation's top 50 integrated
healthcare delivery networks and include such organizations as Centura
Health, North Shore Health System, Mercy Health Services, Harris Methodist
Health System, and Catholic Medical Center of Brooklyn and Queens.
DAOU operates five regional offices and six operations centers across
the country. After the merger, the firm has a staff of over 500 and has
provided services to more than 1,300 healthcare organizations throughout the
U.S.
Statements in this press release concerning DAOU Systems' and Technology
Management's separate or combined business outlook or future economic
performances, revenues, or other financial items, anticipated synergies and
product or service line growth, together with other statements that are not
historical facts, are forward-looking statements. Any such statements are
only predictions, reflecting the best judgment of DAOU Systems and Technology
Management based upon currently available information and involve numerous
risks and uncertainties that could cause actual results to differ materially
from those stated in such statements. Such factors include the company and
industry risks set forth under the caption "Risk Factors" in the Company's
Annual Report on Form 10-KSB for the year ended December 31, 1997. These
risks include specific acquisition-related risks, such as difficulties in the
assimilation of the operations and personnel of an acquired business, the
diversion of management's attention from other business concerns, risks of
entering markets in which DAOU has limited direct prior experience, and the
potential loss of key employees of an acquired business. The forward-looking
statements contained in this press release or in other public statements of
DAOU Systems and Technology Management should be considered in light of those
factors.
