Thursday 16th August 2007
AIM newcomer buys US medical billing specialist
CBaySystems, which offers business process outsourcing services to the US healthcare industry, has acquired US-based medical billing specialist AMSplus. The deal is worth $12.5 million (£6.3 million) and is funded from the proceeds of CBaySystems’ recent AIM IPO.
Of the total consideration, $9.4 million is to be paid upfront, with the balance depending on performance over the next two years.
AMSplus will be integrated into the acquirer’s US-based subsidiary, Mirrus Systems, which focuses on patient financial services. Marc Bohl, AMSplus’ founder, will continue to run the business as part of Mirrus Systems’ management team.
Raman Kumar, chairman of CBaySystems, comments: ‘I am delighted so soon after our IPO to deliver this acquisition, which we expect will improve top-line growth and create cross-selling opportunities through an expanded customer base.
‘The complexity of physician practice reimbursement has increased demand for the services provided by AMSplus, which offers an advanced billing platform, a dedicated team of billing experts and sophisticated analytics and reporting.’
AMSplus serves both independent practices and hospitals. It has 185 employees based in six cities in the North East of the US. In the year to February, the company reported sales of $13.8 million and pre-tax profits of $750,000.
In addition to offering medical billing services through Mirrus Systems, CBaySystems provides medical transcription services, through which voice recordings of doctors can be converted into electronic text documents to be added to patient records. Its back-office operations are based mainly in India. The company floated on AIM in June, raising £12.7 million at the placing price of 89p per share.
Nick Britton
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