Merge closes deal, raises cash

The acquisition of RIS Logic is done. Merge eFilm has closed the previously announced deal (SCAN 7/23/03) to acquire the privately held Ohio-based company, which specializes in the development of software for radiology information systems. The final price tag is $2.725 million in cash plus 772,000 shares of Merge Technologies common stock and the issuance of replacement employee stock options. RIS Logic will operate as a division of Merge eFilm and will maintain its Cleveland office location. Dan Quigg, former RIS Logic president and CEO, will serve as president of the RIS Logic division.

A private placement of 667,000 shares of common stock will more than offset the cost of the deal. The shares, sold to institutional investors at $12 apiece, have bolstered the company's coffers by slightly more than $8 million.