MDAS To Acquire The Broadlane Group For $850 Million

MedAssets Inc MDAS reported the acquisition of Texas-based The Broadlane Group. The Broadlane Group leads in providing solutions for centralized procurement, supply chain management, clinical workforce optimization, etc. According to the deal, MedAssets will buy The Broadlane Group for about $850 million in cash, paying $725 million at closing and the remaining $125 million in January 2012. MedAssets and The Broadlane Group would have together reported non-GAAP combined net revenue of $508.9 million and non-GAAP combined adjusted EBITDA of $161.8 million for the year ended December 31, 2009. Across the US, over 1,100 acute care hospitals and close to 50,000 non-acute care providers are served by The Broadlane Group. Around 3,300 hospitals and about 40,000 non-acute care facilities deploys the services of MedAssets. J.P. Morgan and Barclays Capital are playing as MedAssets' financial advisors in the business deal. MedAssets' legal counsel is Willkie Farr & Gallagher. Chairman, CEO and president of MedAssets John Bardis said, "The Broadlane Group and MedAssets are an outstanding strategic fit, and this combination offers numerous benefits for our clients and stakeholders. We are bringing together some of the best contract pricing in the industry, with highly complementary technology and clinical consulting expertise from both companies." He added, "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.” In addition to this, Bardis said, “The collective strengths and business models of our two companies will also enhance MedAssets' financial profile, with highly visible, recurring revenue as well as cash flow and profit expansion opportunities.” Read more from Benzinga's Company news.