MedAssets to buy Broadlane Group for $850M
MedAssets has entered into a definitive purchase agreement to acquire the Broadlane Group for approximately $850 million in cash, with $725 million to be paid at closing and $125 million to be paid in January 2012.
Based in Dallas, Broadlane provides supply chain management, sourcing of supplies and services, capital equipment lifecycle management, medical device or physician preference item cost management, centralized procurement, clinical and lean process consulting, and clinical workforce optimization.
Patrick Ryan, chairman and CEO of Broadlane, is expected to join MedAssets' board of directors and also assume the role of president of its spend management segment on completion of the transaction.
Broadlane serves more than 1,100 acute care hospitals and 50,000 non-acute care facilities nationwide. MedAssets serves more than 3,300 hospitals (inclusive of 1,700 in its spend management segment) and 40,000 non-acute healthcare providers.
The combined companies' client footprint will be calculated at closing, according to the Atlanta-based MedAssets.
To fund the transaction, MedAssets has obtained financing commitments from J.P. Morgan and Barclays Capital. Also, the transaction is subject only to customary closing conditions and regulatory approvals, including expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for which the filing will be submitted. The transaction is expected to be completed within 60 to 90 days, according to the companies.
Based in Dallas, Broadlane provides supply chain management, sourcing of supplies and services, capital equipment lifecycle management, medical device or physician preference item cost management, centralized procurement, clinical and lean process consulting, and clinical workforce optimization.
Patrick Ryan, chairman and CEO of Broadlane, is expected to join MedAssets' board of directors and also assume the role of president of its spend management segment on completion of the transaction.
Broadlane serves more than 1,100 acute care hospitals and 50,000 non-acute care facilities nationwide. MedAssets serves more than 3,300 hospitals (inclusive of 1,700 in its spend management segment) and 40,000 non-acute healthcare providers.
The combined companies' client footprint will be calculated at closing, according to the Atlanta-based MedAssets.
To fund the transaction, MedAssets has obtained financing commitments from J.P. Morgan and Barclays Capital. Also, the transaction is subject only to customary closing conditions and regulatory approvals, including expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for which the filing will be submitted. The transaction is expected to be completed within 60 to 90 days, according to the companies.