Transcend Acquires DTS America for $9.5M in Cash (TRCR)

TRANSCEND SERVICES,TRCR, a leading provider of clinical documentation services to the U.S. healthcare market, announced today that it has closed its previously announced acquisition of Nashville, Tennessee-based DTS America, Inc., effective April 30, 2011. Founded in 1995, DTS is a medical transcription company that serves approximately 30 hospitals plus a number of clinics and surgery centers in 13 states and currently generates approximately $12 million of annual revenue. The purchase price was $9.5 million in cash. This is a change from the preliminary terms announced on March 3, 2011, as there is no earn-out provision in the final agreement. No debt will be assumed by Transcend. The transaction is expected to have a nominal negative impact on second quarter 2011 earnings per share in the $0.00 - $0.01 per share range due to transaction costs and to be accretive to earnings per share starting in the third quarter of 2011.