MEDNAX To Buy MedData - Quick Facts

(RTTNews) - MEDNAX, Inc. (MD), a medical group specializing in neonatal, anesthesia, maternal-fetal, pediatric cardiology, and other pediatric physician services, has agreed to acquire MedData, Inc., a provider of revenue cycle management services, including professional and facility coding, billing and collections, as well as an industry leading early out/patient pay solution, to emergency department, hospitalist, and other physician specialty groups, as well as to hospitals.

Founded in 1980, MedData has emerged as an innovator in technology- and offshore-enabled revenue cycle management, with a suite of outsourced services targeted at the intersection of reimbursement and patient engagement and satisfaction. The firm's "patient-focused" approach has generated proven results for its clients, while its combination of onshore and offshore capabilities provides efficiency and additional scalability as the company continues to grow rapidly. MedData has recorded compound annual revenue growth of more than 25% since 2007, to a current run rate of about $65 million. Today, the company serves over 3,000 physicians at 700 facilities across 43 states.

The acquisition, which may close in the third quarter of 2014, would be a cash transaction and is likely to be accretive to earnings, after non-cash amortization expense and interest expense.