CARROLLTON, Ga., May 17 /PRNewswire/ -- Greenway Medical Technologies, Inc. (Greenway(R)), a leading provider of integrated practice management and electronic medical records (EMR) software solutions for physician practices, announced today that the company has closed a $20 million round of growth capital funding. The round was led by a $15 million investment from Investor Growth Capital, the wholly owned venture capital subsidiary of Investor AB, the largest publicly listed industrial holding company in Sweden with assets of approximately $14 billion. The investment comes approximately six months after the company closed a $5.3 million round of funding from individual investors. The company plans to use these funds to meet increasing customer demand for PrimeSuite(R), an integrated clinical, financial and administrative software solution for medical practices; increase its visibility in the marketplace through a focused marketing campaign; accelerate the development of specific system functionality; expand its customer support center; and increase its sales and professional services staff.
“This marks an important stage in the evolution of our company,” said Tommy Green, Chairman and Chief Executive Officer of Greenway. “We are now beyond the inflection point of serious growth and well on our way to becoming the world-wide leader in physician automation solutions. Greenway has solidified its reputation with a proven product, and we have taken a leading position in the healthcare information technology marketplace. We will continue to move forward and deliver the highest quality integrated practice management / EMR solution and customer service to the healthcare industry.”
Greenway’s PrimeSuite software includes integrated practice management, EMR and managed care solutions built on Microsoft’s latest .NET architecture. The software integrates a medical practice’s clinical, financial, and administrative processes, streamlining practice workflow and enhancing practice profitability. To date, the company has 155 medical practice clients, including over 640 physicians and 3,600 end users across the country.
With financial, regulatory, and general practice inefficiency pressures continuing to mount, the adoption of EMR systems is increasing. In fact, a recent survey conducted by PriceWaterhouse Coopers Lybrand indicated that 80% of all practicing physicians will invest in an EMR by the end of 2005. The proceeds of this investment will be utilized to place Greenway in a strong position to capitalize on this industry growth and significant increase in EMR adoption. Specifically, Greenway’s plans for usage of these funds include: growth in Greenway’s sales force and distribution channel; expansion of Greenway’s deployment and support infrastructures; pursuit of focused marketing initiatives; and accelerated development of PrimeExchange(R), Greenway’s XML transaction server for the purpose of electronically processing related health information such as lab requests/results, prescriptions, diagnostic equipment reports, and ADT information from hospital information systems.
“Our investment in Greenway indicates our support of the company’s excellent management team, superior product offering, and a desire to participate in the exploding EMR marketplace,” said Noah Walley, Managing Director of Investor Growth Capital. “We believe that Greenway offers the medical industry a unique solution for meeting the highest quality healthcare standards. Many of these systems have failed in the physician office due to usability issues at the point of care. We believe Greenway has developed the first truly usable EMR and has built its product and its company on the premise that functionality without usability is neither functional nor usable. We look forward to a long-term relationship and are excited about Greenway’s future.”
“We are thrilled to have a partner like Investor,” said Tee Green, President and Chief Operating Officer of Greenway. “Since our inception, we have been funded solely by individual investors. The fact that we received our first institutional venture capital funding from an internationally recognized and respected institution further legitimizes our position in the industry in which we serve. Most importantly, with Investor’s partnership and support, we are well positioned to be the worldwide market leader in physician automation solutions.”
This investment represents Greenway’s first and only round of funding involving a venture capital fund. Up to this point, Greenway has raised over $50 million from individual investors, 60 of whom are physicians or other related healthcare professionals.
About Investor Growth Capital, Inc. and Investor AB
Investor Growth Capital (IGC) -- http://www.investorgrowthcapital.com/ -- is a venture capital and private equity advisory group wholly owned by Investor AB of Sweden with offices in North America, Europe and Asia. IGC actively invests in technology and healthcare companies.
IGC accesses Investor AB’s extensive global network of companies and senior managers to assist in the growth and development of its portfolio companies. Investor AB is a shareholder in a number of global public companies such as ABB, Astra Zeneca, Atlas Copco, Electrolux, Ericsson, Gambro, OMHEX, Saab AB, Scania, SEB and WM-data. The portfolio consists of 100 new investments and a number of other holdings including investment in the 3G mobile operator Hi3G. The company has a diversified portfolio of holdings in the following sectors: Healthcare, Technology, Engineering, and Financial Services. More information can be found at: http://www.investorab.com/
About Greenway Medical Technologies, Inc.
Based in Carrollton, Ga., Greenway Medical Technologies, Inc. is the only established software and service provider of an integrated practice management, EMR, and managed care software solution that utilizes Microsoft .NET architecture. A group of more than seventy-five physicians and healthcare professionals joined forces with a team of technologists to develop a suite of integrated, physician-centric software solutions designed to meet the healthcare industry’s demand for dependable, HIPAA-era management software solutions. This software and service solution, called PrimeSuite, enables physicians, practice managers, and other healthcare providers to better serve their patients, more efficiently manage their practices, and increase practice profitability.
As part of detailed evaluations, Microsoft and the American Academy of Family Physicians (AAFP) awarded Greenway the highest overall rating among all practice management solutions evaluated, and the Massachusetts Medical Society (owner and publisher of the New England Journal of Medicine) has provided Greenway its endorsement.
Greenway is a software services company focused on delivering complete physicians’ practice automated solutions through partnerships and technologies from Microsoft, Dell Computers, ADAM, Inc., McKesson, Fujitsu and AT&T. For more information about Greenway, call (800) 341-6313 or visit http://www.greenwaymedical.com/.
ThinkEquity Partners acted as lead placement agent and C.E. Unterberg, Towbin acted as co-agent for Greenway in this financing transaction
Except for the historical information contained herein, the matters discussed in the press release are forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including but not limited to economic, competitive, governmental, and technological factors affecting the Company’s operations, markets, services and related products, prices, and other factors.
Greenway Medical Technologies, Inc.
CONTACT: Bill Anderson of Greenway Medical Technologies, Inc.,+1-770-836-3100, ext. 333; or Liz Youngs for Greenway Medical Technologies,+1-843-971-7140 Inc.