MedAssets to Pay $850M to Acquire Broadlane Group
Supply chain management company MedAssets, Inc. Tuesday announced that it will pay $850 million in cash to acquire Dallas-based rival The Broadlane Group.
The Broadlane Group serves more than 1,100 acute care hospitals and 50,000 non-acute care facilities nationwide, and MedAssets serves more than 3,300 hospitals and 40,000 non-acute healthcare providers.
Using 2009 figures, the combined MedAssets and The Broadlane Group had estimated net revenue of $508.9 million and estimated combined adjusted EBITDA of $161.8 million, the two companies said in a joint statement.
"We are bringing together some of the best contract pricing in the industry, with highly complementary technology and clinical consulting expertise from both companies," said John Bardis, chairman/president/CEO of Atlanta-based MedAssets. "Our core strategy is to enable broader clinical and operating effectiveness throughout our nation's health system, and this transaction will further enhance our ability to help hospitals and other healthcare providers drive their operating and supply costs lower, while improving patient care."
Bardis said the collective strengths of the two companies will enhance MedAssets' financial profile, with recurring revenue, cash flow and profit expansion opportunities.
Patrick Ryan, chairman/CEO of The Broadlane Group, will join the MedAssets board of directors and become president of the company's Spend Management segment when the deal is finalized by the end of 2010.
- Two-Midnight Rule Must be Fixed or Replaced, Say Providers
- CDC Warns of Antibiotic Overuse in Hospitals
- Care Coordination Tough to Define, Measure
- Don't Underestimate Emotional Intelligence
- The Secret to Physician Engagement? It's Not Better Pay
- HIMSS: Software Bugs, Shifting Alliances Unsettling for CIOs
- SCOTUS Review of NC Board Case 'A Very Big Deal' to Providers
- Evidence-Based Practice and Nursing Research: Avoiding Confusion
- Yale New Haven Health Partners with Tenet Healthcare in CT
- AHRQ: Surgical Admissions Bring 48% of Hospital Revenue