Press Releases
CBaySystems Holdings Ltd.
(“CBay Holdings” or the “Company”)
PROPOSED ACQUISITION OF BUSINESS OF SPHERIS INC.
CBay Holdings (AIM: CBAY), a leading provider of technology-enabled medical transcription and related healthcare revenue cycle solutisons, announces that two of its subsidiaries have entered an agreement to purchase select operating assets and liabilities of Spheris Holdings II, Inc., Spheris Inc., Spheris Operations LLC, Vianeta Communications, Spheris Leasing LLC, and Spheris Canada Inc. (together, “Spheris” or the “Spheris Assets”) (the “Proposed Transaction”). Spheris, a global provider of clinical documentation technology and services, filed for Chapter 11 bankruptcy protection on 3 February 2010, under the United States Bankruptcy Code.
Subject to court approval, two of the Company’s subsidiaries, CBay Inc. (“CBay”) and MedQuist Inc. (“MedQuist”), will be appointed the “stalking horse” bidders for the Spheris Assets, pursuant to Section 363 of the United States Bankruptcy Code. The Proposed Transaction will be governed by a court-directed bidding process, subject to applicable regulatory, company and court approvals. Pursuant to the stock and asset purchase agreement and subject to the satisfaction of its conditions, MedQuist will acquire substantially all of the U.S. and Canadian operating assets and select liabilities of Spheris for a total cash consideration of approximately US $75.2 million, and CBay will acquire all of the outstanding ownership interests of Spheris India Private Limited in exchange for assuming its liabilities and a liability of Spheris related to Spheris India Private Limited.
Spheris, which is based in Franklin, Tennessee, and has operations in North America and India, had consolidated revenues of US$182.8 million and a net loss of US$19.2 million for the year ended December 31, 2008.
The transaction is expected to allow Spheris’ customers to benefit from an industry-leading healthcare information management platform (DocQment Enterprise Platform), which serves as the foundation for CBay and MedQuist’s transcription service offerings and includes workflow management, core measures reporting, structured documentation, data analytics, and key customer reporting. In addition, Spheris’ customers will be able to leverage all MedQuist solutions including SpeechQ real-time interactive speech recognition technology for radiology and general medicine, DocQvoice for capturing dictation, and computer-assisted coding and abstracting. This blend of solutions drives document quality and accuracy and advances the adoption of electronic health records -- resulting in improved patient care and higher levels of efficiency.
Robert Aquilina, Chairman of CBay Holdings, said:
“Since 2008, CBay and MedQuist have been working together to demonstrate that enterprise clinical documentation makes an essential contribution to efficient healthcare operations and quality medical outcomes. We look forward to being able to introduce Spheris’ customers and employees to CBay's and MedQuist's solutions and services.”
If the purchase agreement is approved and the conditions therein satisfied, it is expected that the transaction will be completed in the first half of 2010.
Enquiries:
CBaySystems Holdings |
Tel: +91 22 6641 7575
|
| Strand Hanson Limited – Nominated Adviser Rory Murphy Liam Buswell |
Tel: +44 (0) 20 7409 3494 |
| Buchanan Communications Mark Court / Jennie Spivey markc@buchanan.uk.com / jennies@buchanan.uk.com |
Tel: +44 (0) 20 7466 5000 |
About CBay Holdings
CBay Holdings, together with its subsidiaries and equity investees, is a leading provider of technology-enabled medical transcription services and related revenue cycle solutions. CBay Holdings partners with healthcare providers to deliver outsourced transcription solutions designed to improve the quality and timeliness of clinical data and information, reduce operational costs, increase physician satisfaction, and enhance revenue cycle performance. The Company serves more than 2,400 health systems, hospitals, and physician groups in the U.S. CBaySystems Holdings Ltd is composed of a portfolio of businesses, including CBay Systems & Services Inc, CBay Systems (India) Private Ltd, Mirrus Systems Inc. and a majority shareholding of approximately 69.5% per cent. in MedQuist Inc. CBaySystems Holdings Ltd trades under the CBAY symbol on the AIM market of the London Stock Exchange.
Statements made in this press release that are forward-looking in nature may involve risks and uncertainties. These statements include, without limitation, statements regarding the effects or benefits of the transaction, and any other statements that are not historical facts. These risks and uncertainties include the ability of CBay Holdings and its subsidiaries to achieve the benefits currently expected from the proposed transaction and the timing, receipt of approvals and satisfaction of conditions for the transaction. Other risks and uncertainties, which are more fully described in publicly filed documents of CBay Holdings, including its annual reports, could cause actual results to differ from those contained in the forward-looking statements.