Memphis, TN 10/04/02 - Memphis-based software firm, Challenger Corporation, today announced an agreement to acquire the assets of Healthyme.md™, Inc. (HMD), a Tennessee-based physician practice web site hosting and patient education company. HMD provides internet site management services for over 5000 practicing US physicians. The firm also designs and fulfills online patient education service programs for major pharmaceutical and human resources sponsors. While specific financial information is confidential, the combined enterprise will double annual Challenger Corporation revenues and is expected to be accretive to company earnings.
Thomas Stovall, MD, MBA, founder and president of HMD, and a prominent local and national practicing obstetrician and gynecologist, will join the Challenger Board of Directors as Board Chairman. Challenger CEO and President Bob Sweeney will continue to serve in these capacities for the expanded firm. The Challenger Board simultaneously announced a restructuring and appointment of several additional new Board members with significant investment banking, publishing industry and clinical educational experience to guide growth and capital-raising activities.
The merger of Challenger and HMD is the culmination of an earlier marketing and product development agreement. The firms have previously collaborated in the acquisition and development of a comprehensive electronic training course in women's health care and in the promotion of Challenger's state-of-the-art clinical training library to HMD client physicians.
Challenger provides boards preparation, ongoing competency certification and CME, as well as clinical reference software, for the 380,000 practicing American primary care and hospital-based physicians. Over 12, 000 US physicians are customers for Challenger training and testing content. Physician education is a growing $2 billion industry. By means of the HMD acquisition, Challenger will acquire immediate access to an expanded physician customer database, as well as the $4 billion corporate healthcare education marketplace.
Since the company's first product release in 1992, Challenger has enjoyed huge success in its initial niche with emergency and primary care physicians, effectively capturing control of electronic education and training for these markets. Within the last year, Challenger expanded into a broad range of secondary care topics, including ADHD/childhood behavioral disorders, neurology, and, most recently, biohazard and bio-terrorism diagnosis and treatment. Challenger works hand-in-hand with prominent medical universities such as Emory, Temple and the University of Arizona, as well as selected medical specialty societies, to prepare, maintain and regularly update the world's largest electronic library of testing and training content.
According to Bob Sweeney, Challenger's CEO and President, "The opportunity to join hands with Dr. Stovall and his team at HMD offers unique advantages in complementary product lines, consolidated overhead and enriched support and guidance at the top levels of management. Dr. Stovall is among a select group of experts in successfully designing online support systems for physicians. HMD is also known and well-regarded as a vendor of patient education content and communications services on behalf of the physician clients of pharmaceutical and other industries. We will rely on the HMD expertise to build a stronger presence in these sectors and to enhance our own expansion into institutional markets."
Dr. Stovall observed that "The merger of HealthyMe.md™ and Challenger Corporation is a giant step forward for both companies. I'm looking forward to my continued involvement in Challenger as Chairman of the Board and will work with the company on a day-to-day basis to facilitate not only the merger but also the company's growth. We will now be able to deliver not only quality patient education and patient services through the practice, but we'll also deliver continuing professional education directly to the physician."
Media Contact:
Bob Sweeney
CEO and President
Challenger Corporation
5100 Poplar Ave, Suite 310
Memphis, TN 38137
Tel: (901) 762-8449
E-mail: bobs@chall.com
