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MedAssets to Acquire Accuro


April 30, 2008

MedAssets Inc., a vendor of revenue cycle management software and operator of a group purchasing organization, will acquire Accuro Healthcare Solutions Inc., which sells complementary software.

Under a definitive agreement, Atlanta-based MedAssets will pay $207 million in cash and 8.85 million shares of stock, plus a deferred payment of $20 million 12 months after closing. The total transaction value of $350 million includes the assumption of $100 million in Accuro debt. Accuro had net income of about $800,000 in 2007 on revenue of $68.1 million. Assuming a July 1 closing date, MedAssets estimates Accuro will add $37 million to $40 million in total revenue for MedAssets during the rest of 2008. The companies combined had revenue of about $278 million in 2007.

MedAssets went public in December 2007, and Dallas-based Accuro announced this January it was preparing for an initial public offering of stock. Welsh, Carson, Anderson & Stowe, a New York-based private equity investment firm, owns about 80% of Accuro. After the acquisition, the firm will own 12.8% of MedAssets and will have a position on the board.

MedAssets and Accuro both built their software business via a series of acquisitions. MedAssets’ revenue cycle management services include a claims clearinghouse and claims management, denial management, chargemaster, charge capture/auditing and defensible pricing modeling software.

Accuro sells software to manage coding and chargemasters; identify underpayments; manage contracts and denied claims; analyze accounts receivables and prioritize account worklists; and support strategic planning.

MedAssets also announced it expects to exceed analysts’ expectations for revenue and income when it reports first quarter financial results on May 14. The company’s stock rose 10% in morning trading on April 30 on the NASDAQ exchange.

More information is available at medassets.com and accurohealthcare.com.

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