SOMERSET, NJ--(Marketwired - Oct 5, 2016) - MTBC (NASDAQ: MTBC) (NASDAQ: MTBCP), a leading provider of proprietary, web-based electronic health records, practice management and mHealth solutions, today announced the closing of its largest acquisition of revenue cycle management customer accounts and other assets since its IPO.
"We are pleased to acquire substantially all of the assets of MediGain, LLC, a Texas-based medical billing company, and its affiliate, Millennium Practice Management, LLC, a New Jersey-based medical billing company (together, "MediGain"), through our wholly owned subsidiary, said Mahmud Haq, MTBC's CEO. He continued, "This acquisition has allowed us to expand our client base and will allow us to show significant revenue growth in 2017."
"We are excited by the opportunity presented by this acquisition and privileged to be able to support the team members formerly with MediGain as they continue to provide world class practice management support to healthcare providers throughout the United States," said Stephen Snyder, MTBC's President. He continued, "We look forward to leveraging our combined team of professionals and proprietary technology to help healthcare providers further increase revenues and reduce operating costs."
In commenting on the transaction, Bill Korn, MTBC's CFO, said, "We are very pleased to have acquired MediGain's assets at a compelling valuation that represents a significant discount as compared to the industry norm of at least one times annualized revenues for a company of MediGain's size." He continued, "Moreover, we believe that our newly acquired business will contribute to our positive Adjusted EBITDA by the end Q1 2017."
Substantially all of MediGain's assets, including customer accounts, intellectual property, and offshore operations in India and Sri Lanka, were acquired by MTBC's wholly owned subsidiary, MTBC Acquisition, Corp., on October 3, 2016. MTBC's subsidiary acquired these assets through the closing of a Strict Foreclosure Agreement with MediGain, which occurred immediately after MTBC's acquisition of 100% of MediGain's senior debt from Prudential Insurance Company, which was collateralized by substantially all of MediGain's assets.
For more information on MTBC, please visit www.mtbc.com.
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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