Amicas, a $50M healthcare imaging software solution company, entered into an agreement to acquire Emageon for $50M and required assistance in planning and obtaining the maximum synergies from the acquisition. The goal was to become a profitable company in two quarters. Since both companies were previously unprofitable, there was much work to be done to create a strategy for the acquisition as well as the execution plan. The company looked to Liberty to manage the activities, deliver a roadmap and drive the execution for the pre- and post-acquisition process, Day 1 and synergy identification.
Liberty used its proven approach and tools to quickly mobilize the integration team and the processes to achieve the maximum financial benefits. The team quickly identified $37M in savings and prioritized the major opportunity areas. Liberty developed the detailed process, new organization and communication plan for Day 1 to reduce the workforce by 20% to 400 employees. In addition to the reduction in workforce, we developed the execution plan to integrate the two companies to the capture an additional $23M of savings.
- Identified $37M in overall synergies on a combined base spend of $83M.
- Captured $14M in annualized workforce savings on a base of $50M loaded employee costs.
- Captured $2M in annualized office space reduction by closing two offices and saved $50K per year on depreciation expense for an owned facility.
- Captured IT, Finance and Administration savings of $9M.
- Shut down $9M external spend for R&D and renegotiated contracts.
- Identified $1.5M in savings for the hardware integration, installation and repair businesses.
- Identified $1.2M of cross-sell opportunities and $500K of opportunity in better quote management.