Expansion StrategyCurrent market situation in UK and EU
overall represents very similar set of needs related to EMR/EHR deployments as
that of US; integration and interoperability challenges are highly
underestimated during planning stages of such deployments, vendor support
infrastructure is not designed to handle the sheer volume and scope of issues
related to legacy systems, and data migration/integration solutions available
today are prohibitively expensive, operationally disruptive, and onerously
inefficient. At the same time, Asian financial services technology markets are
characterized by exactly the same parameters of strained system
interoperability, onerous and inaccurate data integrations, and lack of options
for those in need of data migration/integration. Our strategy is therefore similar for both
locales of EU and Asia with only difference of Asia being driven entirely by
·Establishing bases of operations in HK/UK
is order of first priority. These bases will deploy center-of-excellence
approach with focus on Account Management, Mergers & Acquisitions (as well
as related functions), and Market Development.
·All technology operations and product
development will continue to be provided virtually out of US.
·Market Development will leverage US
relationships to penetrate key initial accounts in addition to customary
greenfield revenue acquisition activities.
·Once initial presence is established,
CNX will aggressively expand its footprint via continued organic and
progressively accelerating acquisitive growth.
·As organic revenue expands, M&A
group will implement strategic acquisition program with initial focus on
smaller players with synergistic solutions in UK, and gradually expanding
target footprint into other countries of EU.
·In Asia, CareConnext® in HK will
focus on quickly acquiring companies with sufficient account bases to achieve
projected growth plan and generate returns on acquisition investments.
·Market Development will also be
identifying opportunities for new offerings and extension of existing
capabilities, collaborating with R&D teams in US to develop and launch such
products, especially in the area of specialized financial services technologies.
·Revenue and cost synergies will be
realized as part of the M&A strategy, expanding total account value and
reducing infrastructure costs of acquired companies.
·With solid organic and acquisitive
growth in UK and HK as well as gradual geo-expansion, CNX will focus its
M&A activities on larger targets and even wider network footprint.