Ferro resigns as chairman of Merge Healthcare
BY STAFF REPORTS August 26, 2013 11:34AM
Michael Ferro Jr.
Updated: September 29, 2013 6:10AM
Michael Ferro Jr. has resigned as chairman and director of Merge Healthcare Inc., a provider of medical imaging software and cloud-based technology used in healthcare, the company announced Monday.
Board member Dennis Brown was named chairman.
Ferro, the company’s largest shareholder, left open the possibility the company could be taken private.
Ferro is chairman of the Chicago Sun-Times’ parent company, Wrapports Inc.
He said the resignation from Merge, which follows disappointing second quarter results at the company, does not reflect any disagreement with Merge’s management or board.
“Merge is at the heart of a large, growing and dynamic market for healthcare imaging, and, as its largest shareholder, I have a lot riding on its future success,” Ferro said in a statement. “I remain very confident in the company, its products and its new leadership team.”
While he has no immediate plans, Ferro said, “I intend to explore a variety of ways to increase shareholder value, including, possibly, a going-private transaction.”
The stock was trading at $2.56 a share in morning trading Monday, up 6.2 percent.
Earlier this month, the company announced the resignation of Jeffery Surges as chief executive officer and director, and named Justin C. Dearborn the new CEO. That announcement came as the company also disclosed a second quarter net loss of $28.1 million, compared with a loss of $5.9 million for the same quarter a year ago, and a 9 percent drop in sales to $57.2 million from $62.9 million.