MEDAPHIS AGREES TO ACQUIRE THE PRACTICE MANAGEMENT DIVISION OF CYCARE SYSTEMS, INC.
ATLANTA, Oct. 20 /PRNewswire/ -- Medaphis Corporation (NASDAQ-NMS: MEDA), today announced that it has entered into a definitive purchase and sale agreement in which Medaphis has agreed to acquire substantially all of the assets and certain of the liabilities of the Practice Management Division of CyCare Systems, Inc. (NYSE: CYS), for $24 million. During 1992, the Practice Management Division of CyCare Systems, Inc., had revenue of approximately $26 million. The acquisition is subject to obtaining the necessary third-party consents to transfer the assets and assume the related liabilities and is scheduled to close early to mid November. Medaphis will utilize borrowings under its senior credit facility to finance the acquisition. The Practice Management Division performs billing and accounts receivable management services primarily for hospital-affiliated physicians and has operations located in Michigan, New York and Texas. Randolph G. Brown, chief executive officer of Medaphis, said, "This transaction significantly increases our physician operations in several of our existing markets and expands our capabilities in certain new markets. We believe this business will be a valuable addition to Medaphis Physician Services Corporation's operations." Based in Atlanta, Medaphis is a leading provider of business management services, primarily billing and accounts receivable management services to hospitals and hospital-affiliated physicians. -0- 10/20/93 /CONTACT: Michael R. Cote, CFO of Medaphis Corporation, 404-319-3349/ (MEDA CYS)
CO: Medaphis Corporation; CyCare Systems, Inc. ST: Georgia IN: HEA SU: TNM
MP-SH -- NY022 -- 4425 10/20/93 09:22 EDT
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|Date:||Oct 20, 1993|
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