CPSI Acquires Viewgol and Accelerates Global Workforce Presence
16 Outubro 2023 - 5:05PM
Business Wire
CPSI (NASDAQ: CPSI), a community healthcare solutions company,
today announced it has closed its acquisition of Viewgol, a
provider of ambulatory revenue cycle management (“RCM”) analytics
and complementary outsourcing services.
“Our acquisition of Viewgol rapidly accelerates our offshoring
initiatives with more than 80% of its workforce based offshore
today,” said Chris Fowler, chief executive officer of CPSI. “The
scalability of this direct offshore presence marks a critical step
towards our priority: ensuring our RCM offerings remain affordable,
profitable, and scalable by leveraging the global marketplace.
Today, Viewgol provides RCM services and analytics software
solutions to 38 customers in 15 states, representing over 20
different specialty practices. Further, Viewgol’s operations are
almost entirely focused on the ambulatory setting, creating
additional market expansion opportunities and diversifying our RCM
business. Together with Viewgol, we will not only be able to
achieve greater efficiencies and drive margin at scale, but we also
expect to capture meaningful synergies by utilizing its existing
offshore infrastructure.”
“This combination makes a lot of sense on many fronts,” said
Doug Huffman, chief executive officer and co-founder of Viewgol.
“Most exciting is the value we can deliver to Viewgol clients and
our employees as part of a larger organization with expanded
resources, tools, and RCM solutions.”
Exclusive of synergies resulting from the transaction and
incremental amortization expense related to the acquired intangible
assets, Viewgol is expected to generate GAAP net income of
approximately $1.5 million and Adjusted EBITDA of approximately
$4.5 million in 2024.
The exact timing of synergy realization is difficult to predict,
and the incremental amortization expense related to the acquired
intangible assets is dependent upon completion of a business
valuation for purposes of allocating the purchase price; as such,
the Company is unable to estimate the full impact of the
transaction on CPSI’s expected 2024 GAAP results at this time. CPSI
intends to provide an update to full-year 2023 guidance for the
combined company on its third quarter earnings call.
Transaction Summary
Under the terms of the agreement, the purchase price is $36
million in cash, with an additional earnout of up to approximately
$31.5 million based on a combination of achieving certain
profitability metrics for 2024 and the creation of additional
offshore resources supporting TruBridge. McDermott, Will, &
Emery, Grant Thornton, and Willis Towers Watson acted as advisors
for CPSI. Brentwood Capital Advisors, Morris, Manning, &
Martin, and Meredith CPAs acted as advisors to Viewgol.
About CPSI
CPSI has more than four decades of experience in connecting
providers, patients, and communities with innovative solutions that
support both the clinical and financial side of healthcare
delivery. We provide business, consulting, and managed information
technology (IT) services, including our industry leading HFMA Peer
Reviewed® suite of revenue cycle management (RCM) offerings, to
help streamline day-to-day revenue functions, enhance productivity,
and support the financial health of healthcare organizations. Our
patient engagement solutions provide patients and providers with
the critical information and tools they need to share existing
clinical data and analytics that support value-based care, improve
outcomes, and increase patient satisfaction. We support efficient
patient care across an expansive base of community hospitals and
post-acute care facilities with electronic health record (EHR)
product offerings that successfully integrate data between care
settings. We make healthcare accessible through data-driven
insights that deliver workflow efficiencies and remove
distractions. Our solutions allow our clients to achieve better
decisions and results while keeping patients at the center of care.
We are a healthcare solutions company. We clear the way for care.
For more information, please visit www.cpsi.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified generally by the use of
forward-looking terminology and words such as “expects,”
“anticipates,” “estimates,” “believes,” “predicts,” “intends,”
“plans,” “potential,” “may,” “continue,” “should,” “will” and words
of comparable meaning. Without limiting the generality of the
preceding statement, all statements in this press release relating
to the Company’s future financial and operational results,
including anticipated profitability and growth of the Company and
Viewgol, together with other statements regarding the Company and
Viewgol that are not historical facts, are forward-looking
statements. We caution investors that any such forward‑looking
statements are only predictions reflecting the best judgement of
the Company based upon currently available information and are not
guarantees of future performance. Certain risks, uncertainties and
other factors may cause the Company’s actual results, performance
or plans with respect to Viewgol to differ materially from those
projected in the forward‑looking statements. Such factors may
include: risks associated with business acquisition transactions,
such as the risk that Viewgol will not be integrated successfully,
that such integration may be more difficult, time-consuming or
costly than expected or that the expected benefits of the
acquisition will not occur; unexpected costs, liabilities, charges
or expenses resulting from the acquisition of Viewgol; risks
related to future opportunities and plans for the Company and
Viewgol following the acquisition, including uncertainty of the
expected financial performance and results of the Company following
the closing of the acquisition; any disruptions from the
acquisition, making it more difficult to conduct business as usual
or maintain relationships with customers, employees or suppliers;
the inability to retain key personnel; and the possibility that if
the Company does not achieve the perceived benefits of the
acquisition as rapidly or to the extent anticipated by financial
analysts or investors, the market price of the Company’s common
stock could decline; and other risk factors described from time to
time in our public releases and reports filed with the Securities
and Exchange Commission, including, but not limited to, our most
recent Annual Report on Form 10-K and our Quarterly Report on Form
10-Q for the quarter ended March 31, 2023. We also caution
investors that the forward-looking information described herein
represents our outlook only as of this date, and we undertake no
obligation to update or revise any forward-looking statements to
reflect events or developments after the date of this press
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231016896280/en/
Tracey Schroeder Chief Marketing Officer
tracey.schroeder@cpsi.com (251) 639-8100
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