With
$19 billion on the way from the Obama administration to modernize medical record keeping, the companies that digitize health documentation are bulking up with acquisitions.
One such company is Transcend Services Inc. (NASDAQ:TRCR), the third-largest provider of medical transcription services in the U.S., which said it would
acquire assets of Transcription Relief Services LLC (NASDAQ:TRS) for up to $7.5 million.
Transcend uses Internet-based, speech-recognition technology to produce electronic medical documents. The deal appears to be part of a customer acquisition strategy, as Transcend said it expects to migrate TRS' customers, of which there are 30, from the target's multiple technology platforms to its own.
Transcend said it would pay $4.5 million in cash plus a potential earnout of $3 million based on
a combination of fourth-quarter 2009 revenue realized in
the fourth quarter of 2009 and TRS' new sales backlog as of the end of this year.
Suender M&A Advisors initiated the deal and advised TRS, Transcend said. In May, Transcend acquired DeVenture Global Partners Inc., another transcription service company with 30 customers. Transcend agreed to pay $4.25 million for DeVenture, plus a potential earnout of undisclosed size.
- Olaf de Senerpont Domis
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TRS, LLC is not a public company therefore the statement "Transcription Relief Services LLC (NASDAQ:TRS)" is false. The NASDAQ symbol TRS refers to TriMas Corporation and not Transcription Relief Services, LLC.