A Stamford, Conn.-based information and publishing corporation last week agreed to acquire all the stock of Ann Arbor, Mich.-based Medstat Group for approximately $339 million.
The Thomson Corp., which publishes newspapers and specialized publications, including the Physicians' Desk Reference, will pay $27 per share for the publicly traded Medstat Group, a data and decision-support company that recently expanded into managed-care information systems with the Sept. 30 purchase of Rocklin, Calif.-based DKD & Co. (Sept. 19, p. 13).
The transaction is contingent on acquiring a majority of outstanding shares, according to a written statement. The tender offer will begin on Nov. 22. Medstat is traded over the counter on the NASDAQ system, while Thomson is traded on the Toronto Stock Exchange.
Medstat's chairman and chief executive officer, Ernest G. Ludy, has agreed to sell the nearly 1.4 million shares he owns, which represents about 11% of total shares. At the $27 share price, Mr. Ludy's holdings are worth $37.3 million.
The company will continue to operate under the Medstat name, and its senior managers will stay on. Entering into employment agreements effective with the merger are Mr. Ludy; Timothy Murnane, now president and chief operating officer; and William Rauerdink, executive vice president and chief financial officer.
Medstat recently reported record revenues and net income for fiscal 1994 (See related story, p. 86).