SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 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 25, 2003

                           Netsmart Technologies, Inc.
             (Exact name of Registrant as Specified in its Charter)

    Delaware                          0-21177                     13-3680154
(State or other jurisdiction         (Commission                (IRS Employer
    of incorporation                  File No.)              Identification No.)


                       146 Nassau Avenue, Islip, NY 11751
                     (Address of Principal Executive Office)

       Registrant's telephone number, including area code: (631) 968-2000




Item 2.  Acquisition or Disposition of Assets.

On June 25, 2003, Netsmart Technologies, Inc. ("Netsmart") acquired
substantially all of the assets of the CareNet segment ("CareNet") of Shuttle
Data Systems Corporation, d/b/a Adia Information Management Corp. ("Adia"),
pursuant to an asset purchase agreement dated June 25, 2003, among Netsmart,
Creative Socio-Medics Corp. ("CSM"), a wholly-owned subsidiary of Netsmart, Adia
and Steven Heintz, Jr., the president and majority shareholder of Adia. The
principal assets acquired were the intellectual property and customer contracts
of CareNet. The purchase price consisted of 100,000 shares of common stock of
Netsmart, par value $.01 per share, $900,000 cash and a promissory note in the
principal amount of $500,000. The cash portion of the purchase price was paid
for out of existing working capital.

In addition, in connection with the acquistion, Netsmart entered into a
non-compete and non-solicitation agreement with Steven Heintz, Jr. and Jennifer
Lindbert for which Heintz and Lindbert were paid a fee of an aggregate
$140,000.

A press release ("Press Release") describing the transaction was released by
Netsmart on June 25, 2003.

Item 7.  Financial Statements, Pro Forma Financial Statements and Exhibits.

         (a) Financial Statements of business acquired.*

         (b) Pro Forma Financial Information.*

         (c) Exhibits

             2.1 Agreement dated June 25, 2003, among the Registrant,  Creative
             Socio-Medics Corp., Shuttle Data Systems Corp., d/b/a ADIA
             Information  Management Corp. and Steven Heintz, Jr. including a
             list of schedules to the Agreement  which are not being filed. The
             Registrant  will furnish  supplementally  a copy of any omitted
             schedules if requested by the Securities and Exchange Commission.

             99.1 Press Release of Netsmart dated June 25, 2003.

* The financial statements of CareNet and the pro forma financial information
will be filed by an amendment to this Form 8-K within 60 days after July 10,
2003, the date on which this Report is required to be filed.




                                    Signature

   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.

                           NETSMART TECHNOLOGIES, INC.

   /*/                      President, Chief Executive           July 7, 2003
   ____________________     Officer and Director (Principal
   James L. Conway          Executive Officer)


   /*/                      Chief Financial Officer              July 7, 2003
   _____________________    (Principal Financial and
   Anthony F. Grisanti      Accounting Officer)