SysteMed to Acquire Cleveland Firm in Stock Swap

SysteMed said Monday that it will complete acquisition of an Ohio-based designer and manager of prescription drug programs by the end of the month.

SysteMed Chief Executive J. Robert Fosberg said in a written statement that his company will acquire INSURx of Cleveland by June 30 in a stock swap valued at $20 million.

INSURx, a private company with annual revenue of $11 million, manages more than $200 million in prescription drug claims and has 2.5 million members enrolled in its health plan.

To pay for the acquisition, SysteMed, a mail-order pharmacy with its main facilities in Des Moines, Iowa, will write off $250,000 of its second-quarter earnings and about $350,000 as an extraordinary item, Fosberg said. For the first quarter, the company posted a profit of $653,000 on revenue of $27.1 million.

In over-the-counter trading Monday, SysteMed’s stock closed at $5.25 a share, down 12 cents.