News

Zephyr prescribes to Helios Health

March 20, 2002

OCEAN TOWNSHIP, N.J. - Online health care resource provider Helios Health Inc. has experienced pretty much everything the Internet boom and bust cycle can offer - venture capital funding, the exhaustion of that funding, and bankruptcy. Now the company and its network of 1,400 health care kiosks are entering another dimension: ownership changes.

The Wall Street Journal reported that California-based Zephyr Inc. entered a joint venture partnership with Helios on March 6. Under the terms of the agreement, Zephyr will pay Helios $500,000 cash in part to assume a 20 percent stake in the company and provide up to $2 million additional capital to fund the company's kiosk network.

The kiosks, located in doctor's offices and hospital waiting rooms, provide health-care information.

Under the agreement, Helios will transfer the kiosks to Zephyr, but will retain ownership of the kiosk network's operating center, content, and deals with pharmaceutical companies.

Other changes are also on the way for Helios. HealthCare Integrated Services Inc. (AMEX:HII), one of three companies that purchased Helios Health Inc. after it filed Chapter 7 bankruptcy in May, 2001, is buying out MedicalEdge Technologies Inc.'s stake in the company. HealthCare and MedicalEdge jointly purchased an 80 percent stake in the company last summer (See story: The business died, but Helios Health's assets live on).

No other details of the deal were made available. The deal is contingent upon shareholder and other approvals.