April 6, 2010 (FinancialWire) — Merge Healthcare (NASDAQ: MRGE), a health IT solutions provider, said that it has completed a private placement of preferred and common stock totaling $41.75 million, which is specified for use in funding a portion of the proposed acquisition of AMICAS, Inc. (NASDAQ: AMCS ), a provider of medical imaging software and services.

Under a definitive merger agreement between Merge and AMICAS, a subsidiary of Merge launched a tender offer on March 19, 2010 to purchase all of the outstanding shares of common stock of AMICAS for $6.05 per share of common stock validly tendered in the tender offer and not withdrawn.

The merger agreement contains a commitment from Merge to provide $40 million in preferred equity to the acquisition. According to Merge, the private placement will satisfy that commitment and is scheduled to close prior to the close of the tender offer to AMICAS shareholders.

Merge said it has entered this securities purchase agreement with fourteen institutional and other accredited investors, under which it will issue an aggregate of 41,750 shares of series A Non-Voting preferred stock and 7.515 million shares of common stock for a total purchase price of $41.75 million, before fees and expenses.

Wisconsin-based Merge Healthcare develops solutions designed to automate healthcare data and diagnostic workflow for health IT, device and pharmaceutical companies.

AMICAS is a provider of imaging IT solutions.

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.