MedAssets To Be Acquired By Pamplona Capital Management For $2.7 Bln

(RTTNews) - MedAssets Inc. (MDAS) and Pamplona Capital Management announced that they have entered into a definitive agreement whereby Pamplona will acquire MedAssets for $31.35 per share in cash. The purchase price represents a 44.5% premium to the 30 trading day volume weighted average price of MedAssets common stock and an enterprise value of approximately $2.7 billion.

The MedAssets-Pamplona transaction is expected to close in the first quarter of 2016, pending receipt of customary approvals, including certain regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

The transaction also is subject to customary closing conditions, including the approval of the merger agreement by MedAssets stockholders. MedAssets and Pamplona are confident in their ability to obtain all necessary regulatory and other approvals.

Following completion of Pamplona's acquisition of MedAssets, Pamplona will move to complete the sale of MedAssets SCM segment to VHA-UHC Alliance and combine its Precyse business with MedAssets RCM segment. In addition to these proposed transactions, Pamplona and VHA-UHC Alliance have agreed to work together in select service offerings to serve their mutual members and customers, representing further strategic growth opportunities for both businesses.

In a separate press release, MedAssets reported that its net loss for the third quarter of 2015 was $2.2 million, or a loss of $0.04 per share, compared with net income of $7.7 million, or $0.13 per share, for the third quarter of 2014. The net loss in the third quarter of 2015 was due to $5.0 million of restructuring charges related to the company's expense reduction program announced in late September 2015 and $10.3 million of non-cash capitalized software impairments related to certain Revenue Cycle Management products.

Non-GAAP adjusted earnings per share was $0.32 per share for the third quarter of 2015, compared to $0.34 per share for the third quarter of 2014.

Total net revenue for the third quarter of 2015 increased 8.1% to $190.0 million from $175.7 million for the third quarter of 2014. Excluding the revenue contribution from Sg2 (acquired on September 22, 2014), total net revenue growth was 2.3% on a year-over-year basis.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share and revenues of $187.19 million for the third-quarter. Analysts' estimates typically exclude special items.