<PAGE> 1
Filed By Neoforma.com, Inc.
Pursuant to Rule 425 under the
Securities Act of 1933
And deemed filed pursuant to Rule 14a-12 under the
Securities Exchange Act of 1934
Subject Companies: Eclipsys, Inc.
HEALTHvision, Inc.
Novation, LLC
Commission File No.: 000-28715
NEOFORMA.COM INC.
SLIDE PRESENTATION REGARDING
NEOFORMA'S PROPOSED ACQUISITIONS OF ECLIPSYS,
HEALTHVISION AND THE PROPOSED COMMERCIAL
RELATIONSHIP WITH NOVATION
Slide 1:
Accelerating e-Health
Solutions for the Customer
3
<PAGE> 2
Slide 2:
Harvey Wilson
Chairman and CEO, Eclipsys
<PAGE> 3
Slide 3:
Safe Harbor Message
Cautionary Note Regarding Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of the
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995,
including statements regarding projected EBITDA, net revenues, cash flows, gross
transaction volumes, profits and other financial results, expected cost savings,
integration of hospitals, the market for the companies' services, future
services offerings, operational capabilities and the expected benefits of the
mergers and of the Novation commercial agreement. Such statements are based on
the current expectations and beliefs of the managements of Neoforma.com, Inc.,
Eclipsys Corporation, HEALTHvision, Inc., and Novation, LLC and are subject to a
number of risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. In
particular, the following risks, among others, could cause actual results to
differ materially from those described in the forward-looking statements: the
risk that the transactions may not be consummated due to the failure to obtain
regulatory or other approvals or the failure of the Neoforma.com, Eclipsys, or
HEALTHvision stockholders to approve the mergers; the risk that the
Neoforma.com, Eclipsys and HEALTHvision businesses will not be integrated
successfully and that there may be unanticipated costs of such integration; the
ability of the commercial agreement with Novation to generate substantial
revenues for the combined company; the ability of the combined company to
compete effectively with larger competitors or consortiums of healthcare
suppliers that have greater resources; the ability of the combined company to
retain and hire key executives, technical personnel and other employees; the
ability of the combined company to manage its growth and the difficulty of
successfully managing a larger, more geographically dispersed organization; the
ability of the combined company to successfully manage its changing
relationships with customers, suppliers and strategic customers;the willingness
of the combined company's customers to accept the new service offerings and, in
particular, the risk that healthcare providers may not adopt the Internet for
electronic commerce as rapidly as anticipated; the risk that security breakdowns
on the Internet might adversely affect the growth of electronic commerce; and
increasing competition in the various markets serviced by the combined company,
as well as the risks identified in the SEC filings of Neoforma.com and Eclipsys,
including their Form 10-Ks for the 1999 fiscal year. These forward-looking
statements are made only as of the date hereof and we undertake no obligation to
update such statements.
<PAGE> 4
Slide 4:
Safe Harbor Message (cont'd)
Where You Will Be Able to Find Additional Information
Investors and security holders of all companies are advised to read the joint
proxy statement/prospectus regarding the business combination transaction
referenced in the foregoing information, when it becomes available, because it
will contain important information. Neoforma.com and Eclipsys expect to mail a
joint proxy statement/prospectus describing their merger and the related
transactions to their respective stockholders. Such joint proxy
statement/prospectus will be filed with the Securities and Exchange Commission
by both companies. Investors and security holders may obtain a free copy of the
joint proxy statement/prospectus (when available) and other documents filed by
the companies at the Securities and Exchange Commission's web site at
<http://www.sec.gov>. The joint proxy statement/prospectus and such other
documents may also be obtained from Neoforma.com and Eclipsys by directing such
requests to the respective contacts listed above.
Neoforma.com and its officers and directors may be deemed to be participants in
the solicitation of proxies from Neoforma.com's stockholders with respect to the
transactions contemplated by the merger agreement. Information regarding such
officers and directors will be included in the joint proxy statement/prospectus
for its 2000 Annual Meeting of Stockholders and in Neoforma.com's S-4
Registration Statement to be filed with the Securities and Exchange Commission.
This document will be available free of charge at the Securities and Exchange
Commission's Web site at http://www.sec.gov and from the Neoforma.com contact
listed above.
Eclipsys and its officers and directors may be deemed to be participants in the
solicitation of proxies from stockholders of Eclipsys with respect to the
transactions contemplated by the merger agreement. Information regarding such
officers and directors will be included in the joint proxy statement/prospectus
to be filed with the Securities and Exchange Commission. This document will be
available free of charge at the Securities and Exchange Commission's Web site at
http://www.sec.gov and from the Eclipsys contact listed above.
<PAGE> 5
Slide 5:
[NEOFORMA LOGO] [NOVATION LOGO]
Accelerating e-Health
Solutions for the Customer
[ECLIPSYS LOGO] [HEALTHVISION LOGO]
<PAGE> 6
Slide 6:
"Why We Came Together"
- - Address customers' e-Health needs
- Care, supply chain and revenue management
- - End-to-end solutions available now
- - Unlock pockets of value within healthcare organizations (HCOs)
- - The Web is the inescapable answer
<PAGE> 7
Slide 7:
Introducing...
HEALTHvision
Accelerating e-Health
Solutions for the Customer
<PAGE> 8
Slide 8:
Bob Zollars
Chairman and CEO, Neoforma.com
<PAGE> 9
Slide 9:
Transaction Overview
Merger Transactions
- - Acquisition of 100% of Eclipsys
- 1.344 shares of NEOF per ECLP share
- - Acquisition of 100% of HEALTHvision
- 0.444 share of NEOF per HEALTHvision share
- - Purchase accounting method
- - Tax-free transaction
- - Committed votes to approve mergers
- Neoforma.com 35%
- Eclipsys 31%
- HEALTHvision 84%
<PAGE> 10
Slide 10:
Transaction Overview
Novation Agreement
- - Exclusive relationship with VHA, UHC
- - Effective immediately
- - 10-year term with renewal provisions
- - Revenue sharing arrangements
- - Incentive-driven compliance
- - Issuance of Neoforma.com equity
- Stock
- Warrants
<PAGE> 11
Slide 11:
Pro Forma Ownership (a)
(Shares in Millions)
<TABLE>
<CAPTION>
Shares Ownership
------ ---------
<S> <C> <C>
Neoforma.com 71.5 36.9%
EquipMD 5.4 2.8%
VHA 44.4 (b) 22.9%
UHC 9.2 (b) 4.8%
Eclipsys 53.9 27.8%
HEALTHvision (c) 9.5 4.9%
----- -----
Total 193.9 100.0%
===== =====
</TABLE>
(a) Diluted ownership under the treasury stock market based on prices as of
March 28, 2000.
(b) Does not include 15.7 million million at-market warrants (14.2 million for
VHA, 1.5 million for UHC).
(c) Excludes shares issuable to VHA and Eclipsys as HEALTHvision shareholders;
ownership attributable to those shares are included in VHA and Eclipsys.
<PAGE> 12
Slide 12:
Other Key Terms
- - Board of Directors
- Neoforma.com: 4
- Eclipsys: 3
- VHA: 1
- HEALTHvision: 1
- - Management
- Chairman -Harvey Wilson
- CEO -Bob Zollars
- CFO -Fred Ruegsegger
- - Headquarters
- Santa Clara, CA
- - Conditions to closing
<PAGE> 13
Slide 13:
The Leading e-Health Company
- - Trusted, single source of e-Health solutions
- - HCO-focused
- - Unparalleled suite of e-Health products
- Supply chain
- Clinical, financial, administrative
- Internet infrastructure
- - Exclusive 10-year relationship with largest group of healthcare
providers
- - Multiple, high growth revenue sources
- - Strong cash flow, EBITDA breakeven 2H 2001
<PAGE> 14
Slide 14:
[Bar graphs illustrating the following:]
Projected Financial Summary
<TABLE>
<CAPTION>
EBITDA Net Revenue Annual Growth
------ ----------- -------------
<S> <C> <C> <C>
2000 (58) 293
2001 (8) 386 61%
2002 115 508 65%
2003 253 677 49%
2004 419 877 39%
</TABLE>
% Statistics Represents Annual Revenue Growth
<PAGE> 15
Slide 15:
The Leading e-Health Company
[FLOWCHART]
[Hierarchical chart with Healthcare Organization at the top level, Supply Chain,
Care Chain and Revenue Chain at the second level, e-Health Infrastructure at the
third level and Patients, Consumers, Physicians and Suppliers on the last level.
Lines connect the second level to the first level. There are small arrows
pointing up and down between each of the second level boxes to the third level.
There are small arrows pointing up and down between each of the last level ovals
to the third level.]
<PAGE> 16
Slide 16:
Supply Chain [NEOFORMA LOGO]
- - Trusted, neutral B2B exchange for both buyers and sellers
- - First mover advantage in highly fragmented, inefficient healthcare
procurement market
- - Comprehensive, multi-faceted solution
- SHOP
- AUCTION
- PLAN
- - Leading "best-of-breed" technology solutions (Ariba, Oracle, SAP, Cisco)
- - Fully-integrated in HCO materials mgmt. info system
<PAGE> 17
Slide 17:
Supply Chain [NEOFORMA LOGO]
<TABLE>
<CAPTION>
Before After(a)
------ --------
<S> <C> <C>
- - Market Size ($B)
- Domestic $60 $200+
- Global $145 $500+
- - Suppliers 1,050 1,500
- - SKUs 300,000 800,000
- - 2001 Projected Financial Data ($MM)
- Gross Trans. Vol. $537 $3,089
- Net Revenue $30 $71
- EBITDA $(42) $(19)
</TABLE>
(a) Neoforma.com + Novation only.
<PAGE> 18
Slide 18:
Clinical [ECLIPSYS LOGO]
- - 1,400 HCO customers in 17 countries
- - 142 "Feet on the street"
- - Best in class clinical, financial systems
- - Sunrise suite of products --strong momentum
- - Web technologies for EAI --eWebIT
<PAGE> 19
Slide 19:
Clinical [ECLIPSYS LOGO]
- - Adds multiple and diverse revenue sources
- - Accelerates combined entity's projected breakeven from 2003 to 2001
- - Adds strong recurring revenue via ASP model
- - Creates substantial cross-selling opportunities
<PAGE> 20
Slide 20:
Scott Decker
CEO, HEALTHvision
<PAGE> 21
Slide 21:
Internet Infrastructure [HEALTHvision LOGO]
[INFRASTRUCTURE DIAGRAM]
[e-healthSOURCE graphic breaking down the services into two sections: 1)
e-Health Solutions and 2) Healthcare Web Architecture. The e-Health Solutions
graphic consists of four pictures of people representing "Employee",
"Physician", "Consumer" and "Patient". The Healthcare Web Architecture graphic
is a box separated into three levels. The first level is "Security". The second
level contains five parts: Applications, Reference Information, Document
Publishing & Management, Legacy Applications Integration and e-Commerce
Solutions. The last level is the e-healthSOURCE level containing Secure Access,
Authentication, EAI, Secure managing, Connectivity.]
<PAGE> 22
Slide 22:
Internet Infrastructure [HEALTHvision LOGO]
- - 1,200 HCO's currently connected
- - Adds diverse, highly-recurring revenue stream
- ASP subscription base
- Transaction fees
- - Projected 2001 Net Revenue of $30 million
- - Real-time success and momentum
<PAGE> 23
Slide 23:
The Novation Relationship [NOVATION LOGO]
- - Owned by:
- VHA --1,900 hospitals, 250,000 physicians
- UHC --68 academic medical centers, 40,000 physicians
- - Member HCOs purchase $35 billion per year
- - 33% of acute care market
- - 650-person supplier management organization
- - International presence
<PAGE> 24
Slide 24:
Curt Nonomaque
EVP and CFO, VHA
<PAGE> 25
Slide 25:
HCOs Want a Trusted e-Health Source
- - Build, execute an e-Health strategy
- - Connect with physicians, patients, consumers, payors and suppliers
- - Cost-effective strategic applications that
- Lower cost
- Improve quality of care
- Increase patient satisfaction
<PAGE> 26
Slide 26:
Overview of VHA
- - For-profit cooperative
- 1,900 Acute and non-acute care member organizations
- 250,000 Physicians
- 2,000 Employees in 19 U.S. offices
- 50% of staff have clinical backgrounds
- - Expected $1+ billion cash and savings to members in 2000
<PAGE> 27
Slide 27:
VHA Moves Market Share
- - Track record of success
- - Unprecedented financial incentives
<PAGE> 28
Slide 28:
Financial Overview
Fred Ruegsegger
CFO, Neoforma.com
<PAGE> 29
Slide 29:
Neoforma.com Standalone Projections
(Dollars in Millions)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 2003 2004 2001 - 2004
------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenue
Neoforma.com $ 182 $ 537 $ 1,258 $ 3,060 $ 4,459 102%
Novation
------- ------- ------- ------- ------- ---
Total $ 182 $ 537 $ 1,258 $ 3,060 $ 4,459 102%
======= ======= ======= ======= ======= ===
Net Revenue
Neoforma.com $ 11 $ 30 $ 60 $ 122 $ 168 78%
Novation
------- ------- ------- ------- ------- ---
Total $ 11 $ 30 $ 60 $ 122 $ 168 78%
======= ======= ======= ======= ======= ===
EBITDA
Neoforma.com $ (48) $ (42) $ (25) $ 23 $ 52 NM
Novation
------- ------- ------- ------- ------- ---
Total $ (48) $ (42) $ (25) $ 23 $ 52 NM
======= ======= ======= ======= ======= ===
</TABLE>
<PAGE> 30
Slide 30:
Novation Relationship - Overview of Fee Structure
- - Contract purchases by members
- Novation pays base fee to Neoforma.com
- - Non-contract purchases by members and non-members
- Neoforma.com retains majority of fee
<PAGE> 31
Slide 31:
[Bar graphs illustrating the following:]
Projected Novation Member Hospital Roll-Out
<TABLE>
<CAPTION>
2004
2000 2001 2002 2003 2004 Penetration
---- ---- ---- ---- ---- -----------
<S> <C> <C> <C> <C> <C> <C>
Large 17 95 151 207 263 52%
Medium 12 59 96 134 171 38%
Small 28 139 214 289 364 21%
Total 56 292 461 629 798
</TABLE>
<PAGE> 32
Slide 32:
Neoforma.com + Novation
(Dollars in Millions)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 2003 2004 2001 - 2004
------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenue
Neoforma.com $ 182 $ 537 $ 1,258 $ 3,060 $ 4,459 102%
Novation 35 2,551 6,268 10,342 14,725 79%
------- ------- ------- ------- ------- ---
Total $ 216 $ 3,089 $ 7,525 $13,402 $19,184 84%
======= ======= ======= ======= ======= ===
Net Revenue
Neoforma.com $ 11 $ 30 $ 60 $ 122 $ 168 78%
Novation 1 41 95 121 155 56%
------- ------- ------- ------- ------- ---
Total $ 11 $ 71 $ 155 $ 243 $ 323 66%
======= ======= ======= ======= ======= ===
EBITDA
Neoforma.com $ (48) $ (42) $ (25) $ 23 $ 52 NM
Novation (2) 23 77 93 109 69%
------- ------- ------- ------- ------- ---
Total $ (50) $ (19) $ 52 $ 116 $ 161 NM
======= ======= ======= ======= ======= ===
</TABLE>
<PAGE> 33
Slide 33:
Neoforma.com + Novation + HEALTHvision
(Dollars in Millions)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 2003 2004 2001 - 2004
----- ----- ----- ----- ----- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Revenue
Neoforma.com/Novation $ 11 $ 71 $ 155 $ 243 $ 323 66%
HEALTHvision 13 30 76 167 286 112%
Eclipsys
----- ----- ----- ----- ----- ---
Total $ 24 $ 101 $ 230 $ 410 $ 609 82%
===== ===== ===== ===== ===== ===
EBITDA
Neoforma.com/Novation $ (50) $ (19) $ 52 $ 116 $ 161 NM
HEALTHvision (42) (34) (38) (22) 25 NM
Eclipsys
----- ----- ----- ----- ----- ---
Total $ (92) $ (53) $ 15 $ 94 $ 186 NM
===== ===== ===== ===== ===== ===
</TABLE>
<PAGE> 34
Slide 34:
Eclipsys Financial Model
- - Conform to Neoforma.com's net revenue recognition
- 1999 -- 45% ASP/recurring
- 2000 -- Move to 95% ASP/recurring
- Hardware revenue of $30 million with $4.5 million gross margin
- Third party software revenue of $10 million with $2 million
gross margin
- - Bookings
- 2000 -- $300 million
- Q1 -- $60-65 million
- - Projected Growth rates
- Revenue -- 20-25% to 35-40%
- EBITDA -- 25-35% to 70-75%
<PAGE> 35
Slide 35:
Pro Forma Combined Projections
(Dollars in Millions)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 2003 2004 2001 - 2004
------ ------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net Revenue
Neoforma.com/Novation $ 11 $ 71 $ 155 $ 243 $ 323 66%
HEALTHvision 13 30 76 167 286 112%
Eclipsys 210 277 393 521 686 35%
------ ------ ------ ------ ------ ------
Total $ 235 $ 378 $ 623 $ 930 $1,296 51%
====== ====== ====== ====== ====== ======
EBITDA
Neoforma.com/Novation ($ 50) ($ 19) $ 52 $ 116 $ 161 NM
HEALTHvision (42) (34) (38) (22) 25 NM
Eclipsys 34 45 101 158 232 73%
------ ------ ------ ------ ------ ------
Total ($ 58) ($ 8) $ 115 $ 253 $ 419 NM
====== ====== ====== ====== ====== ======
</TABLE>
<PAGE> 36
Slide 36:
Pro Forma Revenue Model
(Dollars in Millions)
<TABLE>
<CAPTION>
CAGR
2000 2001 2002 2003 2004 2001 - 2004
------ ------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net Revenue
E-commerce $ 10 $ 70 $ 161 $ 271 $ 399 79%
Connectivity/Subscription 6 16 38 81 142 107%
Sponsorship/Advertising 3 10 22 47 54 76%
ASP-Recurring 181 271 386 512 676 36%
Consulting/Other 34 11 16 19 25 34%
------ ------ ------ ------ ------ ------
Total $ 235 $ 378 $ 623 $ 930 $1,296 51%
====== ====== ====== ====== ====== ======
Net Revenue Mix
E-commerce 4% 18% 26% 29% 31%
Connectivity/Subscription 3% 4% 6% 9% 11%
Sponsorship/Advertising 1% 3% 3% 5% 4%
ASP-Recurring 77% 72% 62% 55% 52%
Consulting/Other 15% 3% 3% 2% 2%
------ ------ ------ ------ ------
Total 100% 100% 100% 100% 100%
====== ====== ====== ====== ======
</TABLE>
<PAGE> 37
Slide 37:
Pro Forma Impact
(Figures in Millions)
<TABLE>
<CAPTION>
Neoforma.com +
Novation +
HEALTHvision +
Neoforma.com Eclipsys
------------ --------
<S> <C> <C>
Gross Transactions in 2001 $ 537 $ 3,089
Gross Transactions in 2004 $ 4,459 $19,184
Net Revenue in 2001 $ 30 $ 378
Net Revenue in 2004 $ 168 $ 1,296
EBITDA Positive 2003 2H 2001
EBITDA Swing in 2001 -- $ 34
EBITDA Swing in 2004 -- $ 367
Diluted Shares 76.9 (a) 193.9
</TABLE>
(a) Includes EquipMD.
<PAGE> 38
Slide 38:
Summary Investment Highlights
- - Creates the leading e-Health company
- - Single source solutions for
- Supply chain
- Care chain
- Revenue chain
- - $1+ trillion market
- - Acceleration of business models
- - Installed base of committed buyers
- - Compelling financial model
- - Strong, deep management team
<PAGE> 39
Slide 39:
[NEOFORMA LOGO] [NOVATION LOGO]
Accelerating e-Health
Solutions for the Customer
[ECLIPSYS LOGO] [HEALTHVISION LOGO]
