MedAssets announced Tuesday that it has finalized its acquisition of Accuro Healthcare Solutions, Inc.
The acquisition, announced less than five weeks ago, creates a technology and services provider that specializes in using an application services provider model.
MedAssets officials said they acquired Accuro to expand the breadth of their revenue cycle management solutions.
MedAssets completed the transaction by paying about $207 million in cash and 8.85 million shares of common stock.
The agreement calls for an additional payment of $20 million in cash or shares of MedAssets common stock on the first anniversary of the closing of the transaction.
MedAssets funded the cash portion of the deal with cash on hand, a $50 million expansion of its term loan credit facility, and by borrowing money under its existing revolving credit facility.
MedAssets executives said the primary reason for the acquisition is to increase the value of what the company can deliver to hospitals and health systems.
"We are broadening MedAssets' revenue cycle management solution suite with the addition of Accuro's best-of-breed, ASP-based products," said John A. Bardis, chairman, president and chief executive officer of MedAssets. "These comprehensive RCM capabilities are all focused on helping healthcare providers achieve significant and sustainable financial improvement as well as optimize revenue integrity in their RCM process. In addition to being an outstanding strategic fit, the simplicity of Accuro's subscription fee-based revenue provides a predictable financial model."
MedAssets became a publicly owned company in mid-December through an initial public offering of stock.