Hospital software company MedAssets to acquire Broadlane Group for $850 millionBy AP
Tuesday, September 14, 2010
MedAssets to acquire Broadlane Group for $850M
ATLANTA — Hospital software company MedAssets Inc. said Tuesday it will pay $850 million to acquire cost management services provider The Broadlane Group from private equity firm TowerBrook Capital Partners.
MedAssets says it will pay about $725 million for the Dallas company at closing and $125 million in January 2012.
The Broadlane Group provides supply chain management and cost management services to more than 1,100 acute-care hospitals and 50,000 non-acute-care locations across the country.
MedAssets serves more than 3,300 hospitals and 40,000 non-acute health care providers.
MedAssets expects the deal to add about five cents to 10 cents to adjusted earnings per share next year. It also expects the deal to be completed within the next two to three months.
It has obtained financing commitments from J.P. Morgan and Barclays Capital to fund the deal.
Shares of MedAssets fell 63 cents, or nearly 3 percent, to $20.70 in Tuesday morning trading.
Tags: Atlanta, Georgia, Health Care Industry, North America, United States