MTBC (NASDAQ: MTBC) has announced a new acquisition, significantly expanding its revenue cycle management (RCM) and healthcare IT capabilities. The company revealed on June 17 it purchased Meridian Medical Management, a healthcare IT company that delivers advanced healthcare information technology solutions and RCM services to thousands of healthcare providers nationwide. Gores Meridian Medical Holdings, LLC (Gores) has been the owner of Meridian (f.k.a GE Healthcare Strategic Sourcing) since 2013 when it purchased the company from GE Healthcare for an undisclosed price. Gores is selling Meridian for $19.8 million.
The price breaks down to $15 million cash and the assumption of $4.8 million in debt from Meridian. Meridian will also get 200,000 shares of the MTBC’s 11% Series A Cumulative Redeemable Perpetual Preferred Stock plus warrants to purchase 2.25 million shares of MTBC stock, with an exercise price of $7.50 per share for two years.
MTBC also acquired Meridian’s affiliate, Origin Healthcare Solutions, and its subsidiaries, as part of the deal.
The last deal announced by MTBC, according to our Deal Search Online database, was just back in January 2020, when it bought CareCloud Corporation for $17 million. CareCloud Corporation specializes in software and services such as RCM, practice management (PM), electronic health records (EHR), and patient experience management (PXM). CareCloud partners with 7,000 healthcare providers.
In another related deal, MTBC also purchased assets of Orion HealthCorp, Inc. for $10 million in May 2018. The deal was part of Orion’s bankruptcy proceedings. MTBC gained most of Orion’s assets, including customer contracts, accounts receivable, certain equipment, and goodwill. The addition of the assets increased MTBC’s annualized revenue by roughly 50%.
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