Court permits MedQuist to buy rival Spheris for $116.3M
In February, MedQuist entered into a “stalking horse” purchase agreement with clinical documentation company Spheris for its domestic business, after Spheris, of Franklin, Tenn., had filed for Chapter 11 bankruptcy protection.
The purchase price is $98.8 million in cash and an unsecured subordinated promissory note issued by MedQuist Transcriptions in an aggregate principal amount of $17.5 million, according to MedQuist.
Under the terms of the sale, the Mt. Laurel, N.J.-based MedQuist will acquire Spheris’ U.S. assets and CBay will acquire the stock of Spheris India Private Limited, a subsidiary of Spheris.
The companies expect the transaction to close in April, MedQuist added.