API Calls Off Acquisition by Kronos
Workforce management software vendor API Healthcare has announced it will terminate an agreement reached in January to sell the company to Kronos Inc. Several hours later, Kronos announced it had terminated the agreement and implied that API’s technology was inferior. "We are more confident than ever that we now have, and will continue to have, the best and most innovative workforce management solutions in the health care industry," said Kronos CEO Aron Ain in a statement.
Workforce management software vendor API Healthcare has announced it will terminate an agreement reached in January to sell the company to Kronos Inc. Several hours later, Kronos announced it had terminated the agreement and implied that API's technology was inferior. "We are more confident than ever that we now have, and will continue to have, the best and most innovative workforce management solutions in the health care industry," said Kronos CEO Aron Ain in a statement.
The agreement enabled either party to terminate if federal regulatory approval was not granted by mid-May, and the Justice Department recently asked for additional information under the Hart-Scott-Rodino Antitrust Act.
But API also faced strong opposition to the sale from its customers, who feared lower levels of service and innovation, and a migration to Kronos products, says CEO J.P. Fingado. "The clients just became incredibly vocal with Justice and us," he says.
Francisco Partners, a private equity firm in San Francisco, bought API in 2008. The acquisition was made with the intent to have a long-term partnership with API, but the Kronos offer was very attractive, Fingado says. Now, API will continue to operate as an independent entity under Francisco Partners' portfolio, he adds.
--Joseph Goedert
The agreement enabled either party to terminate if federal regulatory approval was not granted by mid-May, and the Justice Department recently asked for additional information under the Hart-Scott-Rodino Antitrust Act.
But API also faced strong opposition to the sale from its customers, who feared lower levels of service and innovation, and a migration to Kronos products, says CEO J.P. Fingado. "The clients just became incredibly vocal with Justice and us," he says.
Francisco Partners, a private equity firm in San Francisco, bought API in 2008. The acquisition was made with the intent to have a long-term partnership with API, but the Kronos offer was very attractive, Fingado says. Now, API will continue to operate as an independent entity under Francisco Partners' portfolio, he adds.
--Joseph Goedert