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) -- 10/17/16 -- 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.
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.
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.
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MTBC Investor and Media Contact:
Christine J. Petraglia
PCG Advisory Group
Chief Financial Officer
Medical Transcription Billing, Corp.
Source: Medical Transcription Billing, Corp.
Released October 17, 2016