CBay Holdings, a holding company with a portfolio of investments in medical transcription, healthcare technology and healthcare financial services today said that it has received a US Court approval to buy all the assets of bankrupt rival Spheris Inc for $116.3 million.
Under the terms of the acquisition, New Jersey-based MedQuist, a portfolio company of CBaySystems Holdings will acquire Spheris' North American assets and CBay Inc will acquire Spheris India Private Limited.
MedQuist will pay $98.8 million in cash and $17.5 million through unsecured subordinated promissory note.
MedQuist and CBay Inc are portfolio companies of CBaySystems Holdings Ltd.
Spheris, based in Franklin, Tennessee is the second-largest medical transcription company in the US including mobile voice capture devices and speech recognition Web-based workflow platforms having its operations in North America and India.
Spheris, which had filed for bankruptcy in February, had consolidated revenues of $182.8 million and a net loss of $19.2 million for the year ended 31 December 2008. Gross assets were $275 million as at 31 December 2008, of which $219 million is goodwill.
Spheris, which employs 1,900 medical language specialists in India, had not included its Indian operations while filing for bankruptcy.
New Jersey-based MedQuist Inc. provides medical transcription technology and services in the US. It also offers digital dictation, speech recognition, document distribution, management reporting, and physician's electronic signature technologies.