SOMERSET, NJ--(Marketwired - Oct 17, 2016) - MTBC (NASDAQ: MTBC) (NASDAQ: MTBCP), a leading provider of proprietary web-based electronic health records, practice management and mHealth solutions, today announces additional details regarding its largest acquisition to date.
"As announced last week, we are very pleased to have acquired MediGain, which marks an important corporate milestone as our largest acquisition to date, and demonstrates the highly strategic nature of our successful, acquisition-based growth strategy," said MTBC CEO Mahmud Haq. In discussing the acquisition, Haq highlighted the following:
- The acquired accounts in good standing have annual revenues of more than $10 million, which will contribute to MTBC's overall revenue growth in 2017;
- The incremental profits from this acquisition are expected to greatly exceed our cost of capital, so we expect that this acquisition will be accretive to MTBC shareholders in 2017;
- We purchased MediGain for $7 million, which represents a significant purchase price discount to the industry norm of more than 1x revenues for a business of MediGain's size;
- We've added talented team members in North America, and expanded our Asia-based team to additional countries with talented, cost-effective workforces.
Gary Smith, who previously served as the seller's chief operating officer and now provides leadership to MediGain Practice Management, explains, "There are significant synergies between the two companies. Our global team of professionals and proprietary technology will allow us to continue improving operating margins while delivering world-class service to our clients."
MTBC acquired substantially all of the assets of MediGain, LLC and its affiliate, Millennium Practice Management, LLC (together, "MediGain"), through its wholly owned subsidiary, MTBC Acquisition, Corp., d/b/a MediGain Practice Management. The purchase price for MediGain included $2 million paid at closing, with the balance of $5 million due in the beginning of 2017. Additional details regarding the transaction can be found in the Company's 8-K, which was filed with the SEC on October 5, 2016.
Medical Transcription Billing, Corp. is a healthcare information technology company that provides a fully integrated suite of proprietary web-based and mobile health solutions, together with related business services, to healthcare providers throughout the United States. Our integrated Software-as-a-Service (or SaaS) platform helps our customers increase revenues, streamline workflows and make better business and clinical decisions, while reducing administrative burdens and operating costs. MTBC's common stock trades on the NASDAQ Capital Market under the ticker symbol "MTBC," and its Series A Preferred Stock trades on the NASDAQ Capital Market under the ticker symbol "MTBCP."
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