MedAssets has entered into a definitive agreement to acquire Accuro Healthcare Solutions, a provider of revenue cycle management (RCM) solutions, in a cash-and-stock deal, valued at approximately $250 million, excluding debt.
The Alpharetta, Ga.-based company said it expects the deal to close in the next 60 to 90 days. It does not require a shareholder vote, and is subject only to customary closing conditions and regulatory approval related to a Hart-Scott-Rodino filing, which will be submitted as soon as it is practical.
John A. Bardis, chairman, president and CEO of MedAssets, said he believes the acquisition will expand its leadership position in hospital-based RCM by creating a more comprehensive suite of RCM ASP-based software and service solutions.
“We are broadening MedAssets’ revenue cycle management solution suite with the addition of Accuro’s best-of-breed, ASP-based products,” Bardis added. “In addition to being an outstanding strategic fit, the simplicity of Accuro’s subscription fee-based revenue provides a predictable financial model.”
Under the terms of the agreement, MedAssets will pay Dallas-based Accuro approximately $207 million in cash and 8.85 million of MedAssets common stock, plus a deferred payment of $20 million due 12 months after closing. The company values the transaction at approximately $350 million, inclusive of Accuro’s $100 million debt outstanding.
The company said the acquisition will exceed published, consensus analyst expectations for total net revenue, adjusted EBITDA and adjusted diluted EPS for the first quarter financial results, which ended March 31.
Total net revenue for the 2008 first quarter is expected to be between $58 million and $59 million, according to MedAssets.