MTBC Announces the Closing of Its Largest Acquisition to Date
October 05 2016 - 8:30AM
Marketwired
MTBC Announces the Closing of Its Largest Acquisition to
Date
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.
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."
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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