MEDAPHIS ACQUIRES GOTTLIEB'S FINANCIAL SERVICES, INC.
ATLANTA, Sept. 1 /PRNewswire/ -- Medaphis Corporation (NASDAQ-NMS: MEDA) today announced that it has acquired Gottlieb's Financial Services, Inc.
("GFS") for $26 million in cash, plus an earnout valued at up to $2.5 million of Medaphis stock based upon the financial performance of GFS in 1994. GFS is a privately-held company that provides business management services, primarily billing and accounts receivable management services, to emergency room physicians. During 1992, GFS had revenue of approximately $13 million. The acquisition will be financed through borrowings under Medaphis' senior credit facility.
Randolph G. Brown, chief executive officer of Medaphis, said, "We consider GFS to be a well managed company that should complement our other operations. GFS will operate as a separate subsidiary and therefore will not require an expensive and time-consuming conversion of its systems and procedures. GFS specializes solely in providing business management services to approximately 800 emergency room physicians in 22 states. The centralized operational focus of GFS provides significant new capability for Medaphis to effectively and efficiently serve primary care physicians." 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- 9/1/93 /CONTACT: Michael R. Cote, chief financial officer of Medaphis, 404-319-3349/
CO: Medaphis Corporation ST: Georgia IN: HEA SU: TNM
GK-SH -- NY009 -- 7788 09/01/93 08:56 EDT
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|Date:||Sep 1, 1993|
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