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Long Island-based Netsmart buys public health software company

By:Powderly, Henry E II
Publication: Long Island Business News
Date: Wednesday, August 2 2006

Software maker Netsmart Technologies said Wednesday it acquired Greenville, S.C.-based QS Systems, which sells record-keeping software to public health organizations.

Netsmart, which sells its software to health and human services organizations, initially paid $1.9 million for QS, which is owned by Intelligent Systems Corp. Netsmart also issued a $1.4-million IOU to the company and will assume $1.8 million of QS Systems' liabilities.

Lastly, Netsmart said it may pay an additional $1.45 million in 2008 if QS Systems outperforms expectations in 2007.

James Conway, chief executive of the Great River-based company, said in a statement the acquisition of QS Systems will enable us to win more contracts such as the one ... awarded by the North Carolina Department of Health and Human Services to provide an integrated statewide public health system.

That deal, announced July 24, is worth nearly $20 million to Netsmart and partner Saber Corp.

Netsmart also said the QS Systems deal will expand its client base to 110 public health organizations, 1,325 customers and 34 state agencies.

The company employs 125 people on Long Island.

Shares of Netsmart (Nasdaq: NTST) were unchanged at $13 apiece Wednesday morning.

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