Medical transcription company MedQuist, its majority shareholder CBay and health IT company Spheris has announced that the U.S. Bankruptcy Court for the District of Delaware has approved the sale of substantially all of Spheris’ assets to MedQuist and CBay.

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.