SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 4, 2001
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Commission File No. 001-12392
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NATIONAL DATA CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE 58-0977458
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(State or other jurisdiction of (IRS Employer
incorporation) Identification Number)
National Data Plaza, Atlanta, Georgia 30329-2010
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (404) 728-2000
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N/A
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(Former name, former address and former fiscal year, if
changed since last year)
Item 9. Regulation FD Disclosure
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NDCHealth (National Data Corporation, NYSE: NDC) and MedUnite today
announced a definitive agreement under which NDCHealth will combine its
physician network services business with MedUnite. The alliance calls for
NDCHealth to become a founding investor in MedUnite joining Aetna, Anthem,
CIGNA, Health Net, Inc., Oxford, Pacificare and WellPoint Health Networks. In
exchange for the assets of its physician network services business, NDCHealth
will receive a 17.9% equity position in MedUnite and the right to nominate a
representative to its board. MedUnite is a privately held service company
developing real-time Internet-based connectivity enabling physicians, insurers
and other healthcare constituents to handle administrative transactions more
efficiently and economically.
NDCHealth's physician network connects physicians to payers to provide
electronic processing for claims, eligibility, referrals and other health
transactions. NDCHealth will continue to market its practice management systems
to connect the physician desktop to the network through the MediSoft, Lytec and
Concept product lines, and will exclusively market MedUnite's physician network
services to its MediSoft, Lytec and Concept customers. In addition, the firms
have entered into cross-marketing agreements that enable each of them to provide
their customers with each other's services, and are working jointly to develop
new products to serve the healthcare industry.
The agreement is subject to customary closing conditions and is expected to
close during NDCHealth's first fiscal quarter ending August 31, 2001.
NDCHealth will account for the alliance using the cost method of
accounting. It is estimated that the financial impact on NDCHealth for fiscal
2002 will be a reduction of less than $10 million in revenue and a neutral
impact on earnings per share, assuming the agreement closes in NDCHealth's first
fiscal quarter and that MedUnite is successful in its integration and operation
of the physician network. It is expected that the alliance and agreement with
MedUnite will increase NDCHealth's total revenue and be accretive to earnings
per share in fiscal years following fiscal 2002, assuming that MedUnite is
successful in marketing its products and services.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NATIONAL DATA CORPORATION
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(Registrant)
By: /s/ David H. Shenk
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David H. Shenk
Vice-President and Corporate Controller
(Chief Accounting Officer)
Date: June 4, 2001