I know I'm not the only one that hopes Kronos' acquisition of API Healthcare falls through. I also know that most people don't feel comfortable talking about it for fear of their jobs. THERE IS SOMETHING YOU CAN DO. Contact the Federal Trade Commission.
The FTC, in conjunction with the Department of Justice, is the government agency that approves mergers and acquisitions and makes sure that antitrust laws aren't broken. If you think this is a bad idea, contact the FTC.
Here are your options:
By email: antitrust@ftc.gov
This method isn't considered confidential, so if that's a concern...
By mail:
Federal trade Commission
Bureau of Competition-H374,
Washington, D.C. 20580
If you mark the mail "Confidential" it will be treated as such.
By phone:
1–877–382–4357
As I understand it, the FTC has issued a second request for information. They don't always do this so hopefully it means they see a potential problem. It also means time is fleeting so ACT NOW.
For more information, visit ftc.gov or view this PDF from their website that gives a nice overview.
Monday, April 4, 2011
Sunday, April 3, 2011
API Heathcare's Acquisition by Kronos Remains Unpopular
My feelings about the pending sale of API Healthcare to Kronos is no secret. I think this is a horrible idea. As it turns out, I'm not the only one that thinks this. I have it on good authority that in addition to me, but the API employees AND customers are not in favor either!
Two and a half years ago when Francisco Partners bought API, there was a lot of uncertainty. The employees knew things were going to get shaken up. There was a shake up and really, I would say that the operation of the entire company changed. The balance between making money, providing a quality product, and treating employees fairly shifted dramatically. I hate to say it but employees were on the losing end of that switch. Nonetheless, the core focus of the company remained steadfast and probably even got more precise. Because of that focus, the vast majority of employees remained loyal to the company. There were only a handful of employees that left or were let go.
Fast forward to 2011. Employee retention has become a big problem. I don't have exact number of departures but I'll let you draw your own conclusions but it's pretty obvious that there's a problem when the company has to resort to bribery. If you were a customer right now, how would you feel knowing employees are jumping ship?
Rumor has it that the clients aren't any more excited about this either. Why would they be? There are two major competitors in the market. They chose API over Kronos for a reason and now they're potentially being forced into using a product they don't want or with a company they don't want to work with.
If ever there was a time for the regulators to step in and say, "NO!!!" this is it. Competition is good for the market and for consumers. There is nothing good that could come of this acquisition. All Kronos wants is to eliminate their biggest competitor because that will translate to more money for them AND they won't have to work as hard to try to maintain some sort of edge in the market.
Two and a half years ago when Francisco Partners bought API, there was a lot of uncertainty. The employees knew things were going to get shaken up. There was a shake up and really, I would say that the operation of the entire company changed. The balance between making money, providing a quality product, and treating employees fairly shifted dramatically. I hate to say it but employees were on the losing end of that switch. Nonetheless, the core focus of the company remained steadfast and probably even got more precise. Because of that focus, the vast majority of employees remained loyal to the company. There were only a handful of employees that left or were let go.
Fast forward to 2011. Employee retention has become a big problem. I don't have exact number of departures but I'll let you draw your own conclusions but it's pretty obvious that there's a problem when the company has to resort to bribery. If you were a customer right now, how would you feel knowing employees are jumping ship?
Rumor has it that the clients aren't any more excited about this either. Why would they be? There are two major competitors in the market. They chose API over Kronos for a reason and now they're potentially being forced into using a product they don't want or with a company they don't want to work with.
If ever there was a time for the regulators to step in and say, "NO!!!" this is it. Competition is good for the market and for consumers. There is nothing good that could come of this acquisition. All Kronos wants is to eliminate their biggest competitor because that will translate to more money for them AND they won't have to work as hard to try to maintain some sort of edge in the market.
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