In what should be an interesting piece of news to customers of Merge Healthcare the company has announced that its Board of Directors has retained Allen & Company, a New York-based investment bank, to assist in exploring and evaluating a broad range of strategic alternatives, including, but not limited to, a sale of the Company or a business combination.
When things like this are announced it normally means the company is for sale.
Shares in Merge closed yesterday at $3.22 per share and this news appears to be positive for Merge shareholders with pre-market trading up by 13%. The share price of Merge peaked in December, 2005 at nearly $29 per share but it has languished between $1.00 and $7.00 since then.
Anyone buying the company will be buying the customers and the technology so there shouldn’t be an immediate impact on Merge customers, but the situation is worth keeping an eye on. Often times when companies are acquired the acquiring company will have an acquisition history that can be reviewed to draw some conclusions about what might happen with the product line. Stay tuned…..