MTBC Acquires Meridian Medical Management, a Former GE Healthcare IT Company
Largest Acquisition to Date
SOMERSET, N.J., June 17, 2020 (GLOBE NEWSWIRE) -- -- MTBC, Inc. (Nasdaq: MTBC) (Nasdaq: MTBCP), a leading provider of cloud-based healthcare IT solutions and services, today announced the closing of its acquisition of Meridian Medical Management (“Meridian”), a former GE Healthcare IT company that delivers advanced healthcare information technology solutions and services to thousands of healthcare providers nationwide.
“Meridian is our largest acquisition to date,” said Stephen Snyder, CEO of MTBC. “We expect to provide increased revenue guidance as part of our second quarter investors call as a result of this transaction. We also believe that Meridian’s team, digital assets, and customer base will help further accelerate our growth and margin expansion during 2021 and beyond.”
Meridian’s Robotic Process Automation (RPA) solution leverages digital assistants called “Microbots” that replace mundane, repetitive processes, allowing organization scalability and increased production in a HIPAA-compliant environment. Meridian’s digital assets also include cloud-based business intelligence software, which provides sophisticated analysis and reporting capabilities to large, complex, multi-specialty physician groups, prestigious healthcare systems, and national healthcare IT vendors. These technology solutions are further extended by Meridian’s leading revenue cycle management and electronic health records solutions.
“Meridian’s technology will further elevate MTBC’s robust solutions with additional tools to help our customers scale and increase profitability,” said A. Hadi Chaudhry, President of MTBC. “We’re excited to welcome our new team members and customers to the MTBC family of companies.”
In the five years since its IPO, MTBC’s revenue achieved a 35% compound annual growth rate (“CAGR”) and management reaffirmed its full-year 2020 guidance in May, which would represent year-over-year revenue growth of 55 - 58% in 2020. During its Q2 earnings call, management will provide an update on its Meridian transaction, including an anticipated increase in its full-year 2020 revenue guidance.
Meridian Billing Management, Co., a Vermont corporation, was known as GE Healthcare Strategic Sourcing Corp. prior to being acquired by Gores Meridian Medical Holdings, LLC in 2013. Meridian employs more than 200 team members and maintains offices throughout the U.S., including Hartford, Connecticut, Seattle, Washington, Rutherford, New Jersey, Reading, Pennsylvania, and Hutchinson, Kansas.
MTBC acquired Meridian Billing Management and its affiliate, Origin Healthcare Solutions and subsidiaries (together, “Meridian Medical Management”), on June 16, 2020, through the closing of a stock purchase agreement. This does not purport to be a full overview of the transaction, additional information regarding which can be found in MTBC’s Form 8-K, which was filed today with the United States Securities Exchange and Commission.
B. Riley FBR, Inc. acted as exclusive investment banker to Meridian in connection with the transaction. Crosstree acted as advisors to MTBC in connection with the transaction.
MTBC is a healthcare information technology company that provides a full suite of proprietary cloud-based solutions, together with related business services, to healthcare providers and hospitals throughout the United States. Our Software-as-a-Service (or SaaS) platform includes revenue cycle management (RCM), practice management (PM), electronic health record (EHR), telehealth and patient experience management (PXM) solutions for high-performance medical groups. MTBC helps clients increase financial and operational performance, streamline clinical workflows, and make better business and clinical decisions, allowing them to improve patient care while reducing administrative burdens and operating costs. MTBC’s common stock trades on the Nasdaq Global Market under the ticker symbol “MTBC,” and its Series A Preferred Stock trades on the Nasdaq Global Market under the ticker symbol “MTBCP.”
For additional information, please visit our website at www.mtbc.com. To view MTBC's latest investor presentation, read press releases, and listen to interviews with management, please visit ir.mtbc.com.
Forward Looking Statement
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.
We cannot provide any assurances that the transaction described in this press release will be consummated, or that if consummated, it will be consummated on the terms as described in this press release.
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, the impact of the COVID-19 pandemic on our financial performance and business activities, 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, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, 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. In addition, there is uncertainty about the spread of the COVID-19 virus and the impact it may have on the Company’s operations, the demand for the Company’s services, and economic activity in general.
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Chief Financial Officer
Released June 17, 2020