Healthcare IT company MTBC agreed to acquire most of Orion Healthcorp's revenue cycle, practice management and group purchasing organization assets, as well as assets of 13 of its affiliate companies.
Here are five things to know.
1. The agreement comes as MTBC was the primary bidder in a bankruptcy sale, according to a news release.
2. If the agreement is finalized, MTBC would purchase Orion's customer contracts, accounts receivable, certain equipment and goodwill, among other assets.
3. The expected deal value, which could still change, is between $10 and $12 million.
4. Overall, MTBC sees the acquisition as a way to expand and boost revenue, as Orion employs a 300-member staff and has offices across 10 states.
"We are uniquely equipped to succeed with the Orion transaction, having successfully integrated MediGain's business, which faced a similar situation before we purchased their assets 20 months ago," said Bill Korn, CFO of MTBC. "That transaction allowed MTBC to grow revenues by 30 percent in 2017 and achieve record profitability, and after successful integration of Orion, we expect to be able to grow our annualized revenues by at least another 50 percent, to achieve a scale which will allow us to further expand our profit margins."
5. The bankruptcy court bidding process is still open. According to the release, a final sale to MTBC or another bidder is expected to occur shortly after an auction, and a transaction is expected be completed within 60 to 90 days. MTBC said it will be entitled to a break-up fee if another bidder wins.