WebMD Corp. plans to acquire Dakota Imaging Inc., a privately held provider of automated healthcare claims processing technology and business process outsourcing (BPO) services.
WebMD has agreed to pay $40 million in cash at closing and as much as $25 million in cash over a three-year period, beginning in April 2005, if certain milestones are achieved. The transaction is subject to Dakota shareholder approval and other customary closing conditions. The acquisition could close as soon as this month.
"We are very pleased to join the WebMD team, where we can now offer payers a comprehensive suite of automated claims processing, real-time electronic transaction processing and industry leading claim data scrubbing services in the market," said Sandeep Goel, president and CEO of Dakota. "This [system] makes it easier for customers to reduce administrative costs and accelerate their revenue cycles, all with the simplicity of working with a single-source vendor for paper, EDI and web transactions."