MTBC Achieves Corporate Milestone With Its Most Recent Strategic Acquisition
October 17 2016 - 8:30AM
Marketwired
MTBC Achieves Corporate Milestone With Its Most Recent Strategic
Acquisition
Acquires Company With Annual Revenues Exceeding $10 Million at a
Compelling Valuation
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.
About MTBC
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."
For more information on MTBC, please visit www.mtbc.com.
Follow MTBC on TWITTER, LINKEDIN and FACEBOOK.
Forward-Looking Statements This press release contains various
forward-looking statements within the meaning of the federal
securities laws. These statements relate to anticipated future
events, future results of operations or future financial
performance. In some cases, you can identify forward-looking
statements by terminology such as "may," "might," "will," "should,"
"intends," "expects," "plans," "goals," "projects," "anticipates,"
"believes," "estimates," "predicts," "potential," or "continue" or
the negative of these terms or other comparable terminology.
Our operations involve risks and uncertainties, many of which
are outside our control, and any one of which, or a combination of
which, could materially affect our results of operations and
whether the forward-looking statements ultimately prove to be
correct. Forward-looking statements in this press release include,
without limitation, statements reflecting management's expectations
for future financial performance and operating expenditures,
expected growth, profitability and business outlook, increased
sales and marketing expenses, and the expected results from the
integration of our acquisitions.
These forward-looking statements are only predictions, are
uncertain and involve substantial known and unknown risks,
uncertainties and other factors which may cause our (or our
industry's) actual results, levels of activity or performance to be
materially different from any future results, levels of activity or
performance expressed or implied by these forward-looking
statements. New risks and uncertainties emerge from time to time,
and it is not possible for us to predict all of the risks and
uncertainties that could have an impact on the forward-looking
statements, including without limitation, risks and uncertainties
relating to: the Company's ability to manage growth; integrate
acquisitions; effectively migrate and keep newly acquired customers
and other important risks and uncertainties referenced and
discussed under the heading titled "Risk Factors" in the Company's
filings with the Securities and Exchange Commission.
The statements in this press release are made as of the date of
this press release, even if subsequently made available by the
Company on its website or otherwise. The Company does not assume
any obligations to update the forward-looking statements provided
to reflect events that occur or circumstances that exist after the
date on which they were made.
SOURCE MTBC
Contact Information
MTBC Investor and Media Contact: Christine J. Petraglia Managing
Director PCG Advisory Group christine@pcgadvisory.com (646)
731-9817 Company Contact: Bill Korn Chief Financial Officer Medical
Transcription Billing, Corp. bkorn@mtbc.com (732) 873-5133
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