CALIAN TECHNOLOGIES $19.74 - Toronto symbol CTY

CALIAN TECHNOLOGIES $19.74 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.com; Shares outstanding: 7.6 million; Market cap: $150.0 million; Dividend yield: 5.3%) has acquired Primacy Management of Burlington, Ontario.

Since 2003, Primacy has been designing, building and managing in-store pharmacies for Loblaw. Primacy now operates 112 such clinics in Loblaw’s stores across Canada.

Primacy will add about $3 million a year to Calian’s revenue. To put that figure in perspective, Calian’s revenue was $56.8 million in the quarter ended December 31, 2011. Calian also expects the acquisition to immediately add to its earnings.

Primacy will help Calian expand its health care services beyond its current government contracts.

The company currently has a support contract with the Canadian Department of National Defence. Under this deal, Calian provides health care professionals who work with the Canadian Forces to provide medical care to military personnel at 30 locations across Canada.

Calian Technologies is still a buy.

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